Customers Bancorp Reports Results for Fourth Quarter and Full Year 2023
- Strong financial performance in Q4 2023 and full year 2023 with net income available to common shareholders of $58.2 million in Q4 2023 and $235.4 million for the full year 2023.
- CET 1 capital ratio of 12.2%1 at December 31, 2023, surpassing the 11.0% - 11.5% target.
- TCE / TA ratio of 7.0% at December 31, 2023, achieving stated target.
- Total estimated insured deposits were 77%2 of total deposits at December 31, 2023, with immediately available liquidity covering uninsured deposits by approximately 202%.
- Non-performing assets were $27.2 million, or 0.13% of total assets, at December 31, 2023 compared to 0.14% at September 30, 2023.
- Allowance for credit losses on loans and leases equaled 499% of non-performing loans at December 31, 2023.
- None.
Insights
The reported Q4 2023 net income of $58.2 million and core earnings of $61.6 million for Customers Bancorp, Inc. suggest a strong performance in the context of a challenging economic environment. The expansion of the net interest margin (NIM) by 11 basis points, when normalized for outsized discount accretion, indicates effective interest income management despite the pressures of a fluctuating rate environment. This is particularly noteworthy given the industry trend of contracting margins under similar conditions.
The increase in the CET 1 capital ratio to 12.2% and the TCE/TA ratio to 7.0% reflect a solid capital position, surpassing the target range and providing a buffer for potential economic downturns or financial stress. The capital adequacy is further underscored by the strategic reduction of non-performing assets to 0.13% of total assets and a high allowance for credit losses on loans and leases, which is 499% of non-performing loans, well above the industry norm. Such a strong capital and credit profile is likely to inspire investor confidence and could positively influence the bank's stock performance.
Customers Bancorp's strategic focus on diversifying its deposit base and maintaining a high percentage of insured deposits (approximately 77%) enhances its risk mitigation strategy. The bank's liquidity position, with $8.5 billion of liquidity immediately available, covering 202% of uninsured deposits, is a testament to its prudent balance sheet management. This high liquidity coverage ratio is a significant factor in assessing the bank's resilience to potential liquidity shocks and contributes to the overall stability of the institution.
The bank's share repurchase program, which saw the repurchase of 1,379,883 common shares at a weighted-average price of $28.58 for $39.8 million in 2023, reflects a confident capital deployment strategy and a commitment to shareholder value. This activity often signals management's belief in the bank's undervaluation and can be a positive signal to the market, potentially affecting the stock's demand dynamics.
Customers Bancorp's performance, particularly the core deposit growth of $1.1 billion in Q4 2023, indicates a robust deposit franchise even in the face of higher interest rates and reduced liquidity in the banking system—conditions that generally pose challenges for the banking sector. The bank's ability to grow its deposit base while repaying maturing wholesale CDs and managing planned outflows demonstrates agility in liquidity management and a competitive advantage in attracting and retaining depositors.
Looking at the broader economic implications, the bank's emphasis on maintaining strong capital and liquidity positions, coupled with the strategic management of interest rate risk, positions it well to navigate a potentially volatile economic landscape in 2024. The focus on loan production in areas where the bank has established relationships suggests a cautious yet growth-oriented approach, which could contribute to sustainable profitability in a challenging economic cycle.
Fourth Quarter 2023 Highlights
-
Q4 2023 net income available to common shareholders was
, or$58.2 million per diluted share; ROAA was$1.79 1.16% and ROCE was15.93% . -
Q4 2023 core earnings* were
, or$61.6 million per diluted share; Core ROAA* was$1.90 1.22% and Core ROCE* was16.87% . -
CET 1 capital ratio of
12.2% 1 at December 31, 2023, compared to11.3% at September 30, 2023, surpassing11.0% -11.5% target. -
TCE / TA ratio* of
7.0% at December 31, 2023, compared to6.5% at September 30, 2023, achieving stated target. -
Q4 2023 net interest margin, tax equivalent (“NIM”) was
3.31% , compared to Q3 2023 NIM of3.70% . Q3 2023 NIM included the benefit of outsized discount accretion of roughly 50 basis points. Normalizing for this outsized accretion, Q4 2023 NIM expanded by 11 basis points. -
Total deposits decreased by
in Q4 2023 from Q3 2023 with a significant positive mix shift. Q4 2023 core deposit growth of$275.1 million funded in part the repayment of maturing wholesale CDs of$1.1 billion and the planned outflow of student-related deposit accounts serviced by BMTX of$0.7 billion .$0.6 billion -
Total estimated insured deposits were
77% 2 of total deposits at December 31, 2023, with immediately available liquidity covering uninsured deposits by approximately202% . -
Non-performing assets were
, or$27.2 million 0.13% of total assets, at December 31, 2023 compared to0.14% at September 30, 2023. Allowance for credit losses on loans and leases equaled499% of non-performing loans at December 31, 2023, compared to466% at September 30, 2023. -
Q4 2023 provision for credit losses on loans and leases of
was lower than Q3 2023 largely driven by lower balances in loans held for investment.$13.4 million -
Q4 2023 book value per share and tangible book value per share* both grew by approximately
, or$2.26 5.0% over Q3 2023, driven by strong quarterly earnings combined with decreased AOCI losses of over the same time period.$13.2 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 |
|
Regulatory capital ratios as of December 31, 2023 are estimates. |
2 |
|
Uninsured deposits (estimate) of |
Full Year 2023 Highlights
-
2023 net income available to common shareholders was
, or$235.4 million per diluted share; ROAA was$7.32 1.16% and ROCE was17.33% . -
2023 core earnings* were
, or$248.2 million per diluted share; Core ROAA* was$7.72 1.22% and Core ROCE* was18.27% . -
Record 2023 net interest income of
.$687.4 million -
CET 1 capital ratio of
12.2% 1 at December 31, 2023, compared to9.6% at December 31, 2022, surpassing11.0% -11.5% target. -
TCE / TA ratio* of
7.0% at December 31, 2023, compared to6.0% at December 31, 2022. -
2023 NIM was
3.29% , an increase of 10 basis points over 2022 NIM of3.19% . -
Non-performing assets were
, or$27.2 million 0.13% of total assets, at December 31, 2023 compared to , or$30.8 million 0.15% of total assets, at December 31, 2022. Allowance for credit losses on loans and leases equaled499% of non-performing loans at December 31, 2023, compared to426% at December 31, 2022. -
Book value per share and tangible book value per share* grew year over year by approximately
or$8.65 22.1% , driven by strong 2023 annual earnings combined with the decreased AOCI losses of over the same time period. Tangible book value per share* has grown at a$26.5 million 15% compound annual growth rate (CAGR) over the past 5 years, significantly higher than the regional bank peer median3 of4% . -
Repurchased 1,379,883 common shares at a weighted-average price of
for$28.58 in 2023.$39.8 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 is included at the end of this document. |
1 |
|
Regulatory capital ratios as of December 31, 2023 are estimates. |
2 |
|
Uninsured deposits (estimate) of |
3 |
|
Regional bank peers based on selected 2023 proxy peers with a reporting date on or before January 24, 2024 before market close. |
CEO Commentary
“We are pleased to share our fourth quarter and full year 2023 results as we continued to execute on our strategic priorities and delivered again for shareholders,” said Customers Bancorp Chairman and CEO Jay Sidhu. “While the banking industry has stabilized following the challenges in early 2023, higher interest rates and less liquidity in the banking system remain headwinds for all banks. We again demonstrated the sustainability of our differentiated deposit franchise by growing core deposits by
“Our Q4 2023 GAAP earnings were
______________________________________________ | ||
* |
|
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 |
|
Regulatory capital ratios as of December 31, 2023 are estimates. |
2 |
|
Uninsured deposits (estimate) of |
Financial Highlights
(Dollars in thousands, except per share data) |
|
At or Three Months Ended |
|
Increase (Decrease) |
|||||||||||
|
December 31, 2023 |
|
September 30, 2023 |
|
|||||||||||
Profitability Metrics: |
|
|
|
|
|
|
|
|
|||||||
Net income available for common shareholders |
|
$ |
58,223 |
|
|
$ |
82,953 |
|
|
$ |
(24,730 |
) |
|
(29.8 |
)% |
Diluted earnings per share |
|
$ |
1.79 |
|
|
$ |
2.58 |
|
|
$ |
(0.79 |
) |
|
(30.6 |
)% |
Core earnings* |
|
$ |
61,633 |
|
|
$ |
83,294 |
|
|
$ |
(21,661 |
) |
|
(26.0 |
)% |
Core earnings per share* |
|
$ |
1.90 |
|
|
$ |
2.59 |
|
|
$ |
(0.69 |
) |
|
(26.6 |
)% |
Return on average assets (“ROAA”) |
|
|
1.16 |
% |
|
|
1.57 |
% |
|
|
(0.41 |
) |
|
|
|
Core ROAA* |
|
|
1.22 |
% |
|
|
1.57 |
% |
|
|
(0.35 |
) |
|
|
|
Return on average common equity (“ROCE”) |
|
|
15.93 |
% |
|
|
23.97 |
% |
|
|
(8.04 |
) |
|
|
|
Core ROCE* |
|
|
16.87 |
% |
|
|
24.06 |
% |
|
|
(7.19 |
) |
|
|
|
Adjusted pre-tax pre-provision net income* |
|
$ |
101,884 |
|
|
$ |
128,564 |
|
|
$ |
(26,680 |
) |
|
(20.8 |
)% |
Net interest margin, tax equivalent |
|
|
3.31 |
% |
|
|
3.70 |
% |
|
|
(0.39 |
) |
|
|
|
Yield on loans (Loan yield) |
|
|
7.30 |
% |
|
|
7.87 |
% |
|
|
(0.57 |
) |
|
|
|
Cost of deposits |
|
|
3.39 |
% |
|
|
3.24 |
% |
|
|
0.15 |
|
|
|
|
Efficiency ratio |
|
|
49.08 |
% |
|
|
41.01 |
% |
|
|
8.07 |
|
|
|
|
Core efficiency ratio* |
|
|
46.70 |
% |
|
|
41.04 |
% |
|
|
5.66 |
|
|
|
|
Non-interest expense to average total assets |
|
|
1.75 |
% |
|
|
1.62 |
% |
|
|
0.13 |
|
|
|
|
Core non-interest expense to average total assets* |
|
|
1.67 |
% |
|
|
1.62 |
% |
|
|
0.05 |
|
|
|
|
Balance Sheet Trends: |
|
|
|
|
|
|
|
|
|||||||
Total assets |
|
$ |
21,316,265 |
|
|
$ |
21,857,152 |
|
|
$ |
(540,887 |
) |
|
(2.5 |
)% |
Total cash and investment securities |
|
$ |
7,355,156 |
|
|
$ |
7,371,551 |
|
|
$ |
(16,395 |
) |
|
(0.2 |
)% |
Total loans and leases |
|
$ |
13,202,084 |
|
|
$ |
13,713,482 |
|
|
$ |
(511,398 |
) |
|
(3.7 |
)% |
Non-interest bearing demand deposits |
|
$ |
4,422,494 |
|
|
$ |
4,758,682 |
|
|
$ |
(336,188 |
) |
|
(7.1 |
)% |
Total deposits |
|
$ |
17,920,236 |
|
|
$ |
18,195,364 |
|
|
$ |
(275,128 |
) |
|
(1.5 |
)% |
Capital Metrics: |
|
|
|
|
|
|
|
|
|||||||
Common Equity |
|
$ |
1,500,600 |
|
|
$ |
1,423,813 |
|
|
$ |
76,787 |
|
|
5.4 |
% |
Tangible Common Equity* |
|
$ |
1,496,971 |
|
|
$ |
1,420,184 |
|
|
$ |
76,787 |
|
|
5.4 |
% |
Common Equity to Total Assets |
|
|
7.0 |
% |
|
|
6.5 |
% |
|
|
0.5 |
|
|
|
|
Tangible Common Equity to Tangible Assets* |
|
|
7.0 |
% |
|
|
6.5 |
% |
|
|
0.5 |
|
|
|
|
Book Value per common share |
|
$ |
47.73 |
|
|
$ |
45.47 |
|
|
$ |
2.26 |
|
|
5.0 |
% |
Tangible Book Value per common share* |
|
$ |
47.61 |
|
|
$ |
45.36 |
|
|
$ |
2.25 |
|
|
5.0 |
% |
Common equity Tier 1 capital ratio (1) |
|
|
12.2 |
% |
|
|
11.3 |
% |
|
|
0.9 |
|
|
|
|
Total risk based capital ratio (1) |
|
|
15.3 |
% |
|
|
14.3 |
% |
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(1) Regulatory capital ratios as of December 31, 2023 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) |
|
Twelve Months Ended |
|
Increase (Decrease) |
||||||||||||||||||||||
|
December 31, 2023 |
|
December 31, 2022 |
|
|
December 31, 2023 |
|
December 31, 2022 |
|
|||||||||||||||||||||
Profitability Metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income available for common shareholders |
|
$ |
58,223 |
|
|
$ |
25,623 |
|
|
$ |
32,600 |
|
|
127.2 |
% |
|
$ |
235,448 |
|
|
$ |
218,402 |
|
|
$ |
17,046 |
|
|
7.8 |
% |
Diluted earnings per share |
|
$ |
1.79 |
|
|
$ |
0.77 |
|
|
$ |
1.02 |
|
|
132.5 |
% |
|
$ |
7.32 |
|
|
$ |
6.51 |
|
|
$ |
0.81 |
|
|
12.4 |
% |
Core earnings* |
|
$ |
61,633 |
|
|
$ |
39,368 |
|
|
$ |
22,265 |
|
|
56.6 |
% |
|
$ |
248,233 |
|
|
$ |
256,415 |
|
|
$ |
(8,182 |
) |
|
(3.2 |
)% |
Core earnings per share* |
|
$ |
1.90 |
|
|
$ |
1.19 |
|
|
$ |
0.71 |
|
|
59.7 |
% |
|
$ |
7.72 |
|
|
$ |
7.63 |
|
|
$ |
0.09 |
|
|
1.2 |
% |
Return on average assets (“ROAA”) |
|
|
1.16 |
% |
|
|
0.55 |
% |
|
|
0.61 |
|
|
|
|
|
1.16 |
% |
|
|
1.13 |
% |
|
|
0.03 |
|
|
|
||
Core ROAA* |
|
|
1.22 |
% |
|
|
0.81 |
% |
|
|
0.41 |
|
|
|
|
|
1.22 |
% |
|
|
1.32 |
% |
|
|
(0.10 |
) |
|
|
||
Return on average common equity (“ROCE”) |
|
|
15.93 |
% |
|
|
8.05 |
% |
|
|
7.88 |
|
|
|
|
|
17.33 |
% |
|
|
17.40 |
% |
|
|
(0.07 |
) |
|
|
||
Core ROCE* |
|
|
16.87 |
% |
|
|
12.36 |
% |
|
|
4.51 |
|
|
|
|
|
18.27 |
% |
|
|
20.43 |
% |
|
|
(2.16 |
) |
|
|
||
Adjusted pre-tax pre-provision net income* |
|
$ |
101,884 |
|
|
$ |
81,377 |
|
|
$ |
20,507 |
|
|
25.2 |
% |
|
$ |
416,563 |
|
|
$ |
400,712 |
|
|
$ |
15,851 |
|
|
4.0 |
% |
Net interest margin, tax equivalent |
|
|
3.31 |
% |
|
|
2.67 |
% |
|
|
0.64 |
|
|
|
|
|
3.29 |
% |
|
|
3.19 |
% |
|
|
0.10 |
|
|
|
||
Yield on loans (Loan yield) |
|
|
7.30 |
% |
|
|
5.64 |
% |
|
|
1.66 |
|
|
|
|
|
7.16 |
% |
|
|
5.00 |
% |
|
|
2.16 |
|
|
|
||
Cost of deposits |
|
|
3.39 |
% |
|
|
2.73 |
% |
|
|
0.66 |
|
|
|
|
|
3.27 |
% |
|
|
1.31 |
% |
|
|
1.96 |
|
|
|
||
Efficiency ratio |
|
|
49.08 |
% |
|
|
49.20 |
% |
|
|
(0.12 |
) |
|
|
|
|
46.49 |
% |
|
|
44.81 |
% |
|
|
1.68 |
|
|
|
||
Core efficiency ratio* |
|
|
46.70 |
% |
|
|
49.12 |
% |
|
|
(2.42 |
) |
|
|
|
|
45.45 |
% |
|
|
43.02 |
% |
|
|
2.43 |
|
|
|
||
Non-interest expense to average total assets |
|
|
1.75 |
% |
|
|
1.50 |
% |
|
|
0.25 |
|
|
|
|
|
1.64 |
% |
|
|
1.51 |
% |
|
|
0.13 |
|
|
|
||
Core non-interest expense to average total assets* |
|
|
1.67 |
% |
|
|
1.50 |
% |
|
|
0.17 |
|
|
|
|
|
1.62 |
% |
|
|
1.50 |
% |
|
|
0.12 |
|
|
|
||
Balance Sheet Trends: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets |
|
$ |
21,316,265 |
|
|
$ |
20,896,112 |
|
|
$ |
420,153 |
|
|
2.0 |
% |
|
|
|
|
|
|
|
|
|||||||
Total cash and investment securities |
|
$ |
7,355,156 |
|
|
$ |
4,283,565 |
|
|
$ |
3,071,591 |
|
|
71.7 |
% |
|
|
|
|
|
|
|
|
|||||||
Total loans and leases |
|
$ |
13,202,084 |
|
|
$ |
15,794,671 |
|
|
$ |
(2,592,587 |
) |
|
(16.4 |
)% |
|
|
|
|
|
|
|
|
|||||||
Non-interest bearing demand deposits |
|
$ |
4,422,494 |
|
|
$ |
1,885,045 |
|
|
$ |
2,537,449 |
|
|
134.6 |
% |
|
|
|
|
|
|
|
|
|||||||
Total deposits |
|
$ |
17,920,236 |
|
|
$ |
18,156,953 |
|
|
$ |
(236,717 |
) |
|
(1.3 |
)% |
|
|
|
|
|
|
|
|
|||||||
Capital Metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Common Equity |
|
$ |
1,500,600 |
|
|
$ |
1,265,167 |
|
|
$ |
235,433 |
|
|
18.6 |
% |
|
|
|
|
|
|
|
|
|||||||
Tangible Common Equity* |
|
$ |
1,496,971 |
|
|
$ |
1,261,538 |
|
|
$ |
235,433 |
|
|
18.7 |
% |
|
|
|
|
|
|
|
|
|||||||
Common Equity to Total Assets |
|
|
7.0 |
% |
|
|
6.0 |
% |
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tangible Common Equity to Tangible Assets* |
|
|
7.0 |
% |
|
|
6.0 |
% |
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Book Value per common share |
|
$ |
47.73 |
|
|
$ |
39.08 |
|
|
$ |
8.65 |
|
|
22.1 |
% |
|
|
|
|
|
|
|
|
|||||||
Tangible Book Value per common share* |
|
$ |
47.61 |
|
|
$ |
38.97 |
|
|
$ |
8.64 |
|
|
22.2 |
% |
|
|
|
|
|
|
|
|
|||||||
Common equity Tier 1 capital ratio (1) |
|
|
12.2 |
% |
|
|
9.6 |
% |
|
|
2.6 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total risk based capital ratio (1) |
|
|
15.3 |
% |
|
|
12.2 |
% |
|
|
3.1 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(1) Regulatory capital ratios as of December 31, 2023 are estimates. |
||||||||||||||||||||||||||||||
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
Key Balance Sheet Trends
Loans and Leases
The following table presents the composition of total loans and leases as of the dates indicated:
(Dollars in thousands) |
December 31, 2023 |
|
% of Total |
|
September 30, 2023 |
|
% of Total |
|
December 31, 2022 |
|
% of Total |
||||||
Loans and Leases Held for Investment |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & industrial: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Specialty lending |
$ |
5,006,693 |
|
38.9 |
% |
|
$ |
5,422,161 |
|
40.0 |
% |
|
$ |
5,412,887 |
|
35.0 |
% |
Other commercial & industrial |
|
1,087,582 |
|
8.5 |
|
|
|
1,115,364 |
|
8.2 |
|
|
|
1,135,336 |
|
7.4 |
|
Loans to mortgage companies |
|
1,014,742 |
|
7.9 |
|
|
|
1,042,549 |
|
7.7 |
|
|
|
1,447,919 |
|
9.4 |
|
Multifamily |
|
2,138,622 |
|
16.6 |
|
|
|
2,130,213 |
|
15.7 |
|
|
|
2,213,019 |
|
14.3 |
|
Commercial real estate owner occupied |
|
797,319 |
|
6.2 |
|
|
|
794,815 |
|
5.9 |
|
|
|
885,339 |
|
5.7 |
|
Loans receivable, PPP |
|
74,735 |
|
0.6 |
|
|
|
137,063 |
|
1.0 |
|
|
|
998,153 |
|
6.5 |
|
Commercial real estate non-owner occupied |
|
1,177,650 |
|
9.2 |
|
|
|
1,178,203 |
|
8.7 |
|
|
|
1,290,730 |
|
8.3 |
|
Construction |
|
166,393 |
|
1.2 |
|
|
|
252,588 |
|
1.8 |
|
|
|
162,009 |
|
1.0 |
|
Total commercial loans and leases |
|
11,463,736 |
|
89.1 |
|
|
|
12,072,956 |
|
89.0 |
|
|
|
13,545,392 |
|
87.6 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Residential |
|
484,435 |
|
3.8 |
|
|
|
483,133 |
|
3.6 |
|
|
|
497,952 |
|
3.3 |
|
Manufactured housing |
|
38,670 |
|
0.3 |
|
|
|
40,129 |
|
0.3 |
|
|
|
45,076 |
|
0.3 |
|
Installment: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Personal |
|
555,533 |
|
4.3 |
|
|
|
629,843 |
|
4.6 |
|
|
|
964,641 |
|
6.2 |
|
Other |
|
319,393 |
|
2.5 |
|
|
|
337,053 |
|
2.5 |
|
|
|
413,298 |
|
2.7 |
|
Total installment loans |
|
874,926 |
|
6.8 |
|
|
|
966,896 |
|
7.1 |
|
|
|
1,377,939 |
|
8.9 |
|
Total consumer loans |
|
1,398,031 |
|
10.9 |
|
|
|
1,490,158 |
|
11.0 |
|
|
|
1,920,967 |
|
12.4 |
|
Total loans and leases held for investment |
$ |
12,861,767 |
|
100.0 |
% |
|
$ |
13,563,114 |
|
100.0 |
% |
|
$ |
15,466,359 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Multifamily |
$ |
— |
|
— |
% |
|
$ |
— |
|
— |
% |
|
$ |
4,079 |
|
1.2 |
% |
Commercial real estate non-owner occupied |
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
— |
|
Total commercial loans and leases |
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
4,079 |
|
1.2 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Residential |
|
1,215 |
|
0.3 |
|
|
|
1,005 |
|
0.7 |
|
|
|
829 |
|
0.3 |
|
Installment: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Personal |
|
151,040 |
|
44.4 |
|
|
|
124,848 |
|
83.0 |
|
|
|
133,801 |
|
40.8 |
|
Other |
|
188,062 |
|
55.3 |
|
|
|
24,515 |
|
16.3 |
|
|
|
189,603 |
|
57.8 |
|
Total installment loans |
|
339,102 |
|
99.7 |
|
|
|
149,363 |
|
99.3 |
|
|
|
323,404 |
|
98.6 |
|
Total consumer loans |
|
340,317 |
|
100.0 |
|
|
|
150,368 |
|
100.0 |
|
|
|
324,233 |
|
98.8 |
|
Total loans held for sale |
$ |
340,317 |
|
100.0 |
% |
|
$ |
150,368 |
|
100.0 |
% |
|
$ |
328,312 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total loans and leases portfolio |
$ |
13,202,084 |
|
|
|
$ |
13,713,482 |
|
|
|
$ |
15,794,671 |
|
|
Loans and Leases Held for Investment
Loans and leases held for investment were
Loans and leases held for investment of
Loans Held for Sale
Loans held for sale increased
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) |
December 31, 2023 |
|
September 30, 2023 |
|
|
December 31, 2023 |
|
December 31, 2022 |
|
||||||||||||||
Allowance for credit losses on loans and leases |
$ |
135,311 |
|
|
$ |
139,213 |
|
|
$ |
(3,902 |
) |
|
$ |
135,311 |
|
|
$ |
130,924 |
|
|
$ |
4,387 |
|
Provision (benefit) for credit losses on loans and leases |
$ |
13,420 |
|
|
$ |
17,055 |
|
|
$ |
(3,635 |
) |
|
$ |
13,420 |
|
|
$ |
27,891 |
|
|
$ |
(14,471 |
) |
Net charge-offs from loans held for investment |
$ |
17,322 |
|
|
$ |
17,498 |
|
|
$ |
(176 |
) |
|
$ |
17,322 |
|
|
$ |
27,164 |
|
|
$ |
(9,842 |
) |
Annualized net charge-offs to average loans and leases |
|
0.51 |
% |
|
|
0.50 |
% |
|
|
|
|
0.51 |
% |
|
|
0.70 |
% |
|
|
||||
Coverage of credit loss reserves for loans and leases held for investment |
|
1.13 |
% |
|
|
1.10 |
% |
|
|
|
|
1.13 |
% |
|
|
0.93 |
% |
|
|
Net charge-offs were relatively stable with
Provision (benefit) for Credit Losses
|
Three Months Ended |
|
Increase (Decrease) |
|
Three Months Ended |
|
Increase (Decrease) |
|
||||||||||||||
(Dollars in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
|
December 31, 2023 |
|
December 31, 2022 |
|
|
||||||||||||
Provision for credit losses on loans and leases |
$ |
13,420 |
|
|
$ |
17,055 |
|
$ |
(3,635 |
) |
|
$ |
13,420 |
|
|
$ |
27,891 |
|
$ |
(14,471 |
) |
|
Provision (benefit) for credit losses on available for sale debt securities |
|
103 |
|
|
|
801 |
|
|
(698 |
) |
|
|
103 |
|
|
|
325 |
|
|
(222 |
) |
|
Provision for credit losses |
|
13,523 |
|
|
|
17,856 |
|
|
(4,333 |
) |
|
|
13,523 |
|
|
|
28,216 |
|
|
(14,693 |
) |
|
Provision (benefit) for credit losses on unfunded commitments |
|
(136 |
) |
|
|
48 |
|
|
(184 |
) |
|
|
(136 |
) |
|
|
153 |
|
|
(289 |
) |
|
Total provision for credit losses |
$ |
13,387 |
|
|
$ |
17,904 |
|
$ |
(4,517 |
) |
|
$ |
13,387 |
|
|
$ |
28,369 |
|
$ |
(14,982 |
) |
|
The provision for credit losses on loans and leases in Q4 2023 was
The provision for credit losses on available for sale investment securities in Q4 2023 was
Asset Quality
The following table presents asset quality metrics as of the dates indicated:
(Dollars in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
Increase (Decrease) |
|
December 31, 2023 |
|
December 31, 2022 |
|
Increase (Decrease) |
||||||||||||
Non-performing assets (“NPAs”): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nonaccrual / non-performing loans (“NPLs”) |
$ |
27,110 |
|
|
$ |
29,867 |
|
|
$ |
(2,757 |
) |
|
$ |
27,110 |
|
|
$ |
30,737 |
|
|
$ |
(3,627 |
) |
Non-performing assets |
$ |
27,209 |
|
|
$ |
29,970 |
|
|
$ |
(2,761 |
) |
|
$ |
27,209 |
|
|
$ |
30,783 |
|
|
$ |
(3,574 |
) |
NPLs to total loans and leases |
|
0.21 |
% |
|
|
0.22 |
% |
|
|
|
|
0.21 |
% |
|
|
0.19 |
% |
|
|
||||
Reserves to NPLs |
|
499.12 |
% |
|
|
466.11 |
% |
|
|
|
|
499.12 |
% |
|
|
425.95 |
% |
|
|
||||
NPAs to total assets |
|
0.13 |
% |
|
|
0.14 |
% |
|
|
|
|
0.13 |
% |
|
|
0.15 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans and leases (1) risk ratings: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loans and leases (2) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pass |
$ |
9,955,243 |
|
|
$ |
10,503,731 |
|
|
$ |
(548,488 |
) |
|
$ |
9,955,243 |
|
|
$ |
10,793,980 |
|
|
$ |
(838,737 |
) |
Special Mention |
|
196,182 |
|
|
|
189,329 |
|
|
|
6,853 |
|
|
|
196,182 |
|
|
|
138,829 |
|
|
|
57,353 |
|
Substandard |
|
339,664 |
|
|
|
280,267 |
|
|
|
59,397 |
|
|
|
339,664 |
|
|
|
291,118 |
|
|
|
48,546 |
|
Total commercial loans and leases |
|
10,491,089 |
|
|
|
10,973,327 |
|
|
|
(482,238 |
) |
|
|
10,491,089 |
|
|
|
11,223,927 |
|
|
|
(732,838 |
) |
Consumer loans |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Performing |
|
1,379,603 |
|
|
|
1,473,493 |
|
|
|
(93,890 |
) |
|
|
1,379,603 |
|
|
|
1,899,376 |
|
|
|
(519,773 |
) |
Non-performing |
|
18,428 |
|
|
|
16,665 |
|
|
|
1,763 |
|
|
|
18,428 |
|
|
|
21,591 |
|
|
|
(3,163 |
) |
Total consumer loans |
|
1,398,031 |
|
|
|
1,490,158 |
|
|
|
(92,127 |
) |
|
|
1,398,031 |
|
|
|
1,920,967 |
|
|
|
(522,936 |
) |
Loans and leases receivable (1) |
$ |
11,889,120 |
|
|
$ |
12,463,485 |
|
|
$ |
(574,365 |
) |
|
$ |
11,889,120 |
|
|
$ |
13,144,894 |
|
|
$ |
(1,255,774 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(1) Risk ratings are assigned to loans and leases held for investment, and excludes loans held for sale and loans receivable, mortgage warehouse, at fair value. |
|||||||||||||||||||||||
(2) Excludes loan receivable, PPP, as eligible PPP loans are fully guaranteed by the Small Business Administration. |
Over the last decade, the Bank has developed a suite of commercial loan products with one particularly important common denominator: relatively low credit risk assumption. The Bank’s C&I, loans to mortgage companies, corporate and specialty lending lines of business, and multifamily loans for example, are characterized by conservative underwriting standards and low loss rates. Because of this emphasis, the Bank’s credit quality to date has been incredibly healthy despite an adverse economic environment. Maintaining strong asset quality also requires a highly active portfolio monitoring process. In addition to frequent client outreach and monitoring at the individual loan level, management employs a bottom-up data driven approach to analyze the commercial portfolio.
Total consumer installment loans held for investment at December 31, 2023 were less than
Non-performing loans at December 31, 2023 remained relatively stable at
Investment Securities
The investment securities portfolio, including debt securities classified as available for sale (“AFS”) and held to maturity (“HTM”) provides periodic cash flows through regular maturities and amortization, can be used as collateral to secure additional funding, and is an important component of the Bank’s liquidity position.
The following table presents the composition of the investment securities portfolio as of the dates indicated:
(Dollars in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|||
Debt securities, available for sale |
$ |
2,376,860 |
|
$ |
2,746,729 |
|
$ |
2,961,015 |
Equity securities |
|
28,780 |
|
|
26,478 |
|
|
26,485 |
Investment securities, at fair value |
|
2,405,640 |
|
|
2,773,207 |
|
|
2,987,500 |
Debt securities, held to maturity |
|
1,103,170 |
|
|
1,178,370 |
|
|
840,259 |
Total investment securities portfolio |
$ |
3,508,810 |
|
$ |
3,951,577 |
|
$ |
3,827,759 |
Critically important to performance during the recent banking crisis are the characteristics of a bank’s securities portfolio. While there may be virtually no credit risk in some of these portfolios, holding longer term and lower yielding securities is creating challenges for many banks. Customers’ securities portfolio is highly liquid, short in duration, and high in yield. At December 31, 2023, the AFS debt securities portfolio had a spot yield of
At December 31, 2023, the HTM debt securities portfolio represented only
Deposits
The following table presents the composition of our deposit portfolio as of the dates indicated:
(Dollars in thousands) |
December 31, 2023 |
|
% of Total |
|
September 30, 2023 |
|
% of Total |
|
December 31, 2022 |
|
% of Total |
||||||
Demand, non-interest bearing |
$ |
4,422,494 |
|
24.7 |
% |
|
$ |
4,758,682 |
|
26.2 |
% |
|
$ |
1,885,045 |
|
10.4 |
% |
Demand, interest bearing |
|
5,580,527 |
|
31.1 |
|
|
|
5,824,410 |
|
32.0 |
|
|
|
8,476,027 |
|
46.7 |
|
Total demand deposits |
|
10,003,021 |
|
55.8 |
|
|
|
10,583,092 |
|
58.2 |
|
|
|
10,361,072 |
|
57.1 |
|
Savings |
|
1,402,941 |
|
7.8 |
|
|
|
1,118,353 |
|
6.1 |
|
|
|
811,798 |
|
4.5 |
|
Money market |
|
3,226,395 |
|
18.0 |
|
|
|
2,499,593 |
|
13.7 |
|
|
|
2,734,217 |
|
15.1 |
|
Time deposits |
|
3,287,879 |
|
18.4 |
|
|
|
3,994,326 |
|
22.0 |
|
|
|
4,249,866 |
|
23.3 |
|
Total deposits |
$ |
17,920,236 |
|
100.0 |
% |
|
$ |
18,195,364 |
|
100.0 |
% |
|
$ |
18,156,953 |
|
100.0 |
% |
Total deposits decreased
Total deposits decreased
__________________________________ | ||
1 |
Uninsured deposits (estimate) of |
Borrowings
The following table presents the composition of our borrowings as of the dates indicated:
(Dollars in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|||
FHLB advances |
$ |
1,203,207 |
|
$ |
1,529,839 |
|
$ |
800,000 |
Senior notes |
|
123,840 |
|
|
123,775 |
|
|
123,580 |
Subordinated debt |
|
182,230 |
|
|
182,161 |
|
|
181,952 |
Total borrowings |
$ |
1,509,277 |
|
$ |
1,835,775 |
|
$ |
1,105,532 |
Total borrowings decreased
Total borrowings increased
Capital
The following table presents certain capital amounts and ratios as of the dates indicated:
(Dollars in thousands except per share data) |
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
||||||
Customers Bancorp, Inc. |
|
|
|
|
|
||||||
Common Equity |
$ |
1,500,600 |
|
|
$ |
1,423,813 |
|
|
$ |
1,265,167 |
|
Tangible Common Equity* |
$ |
1,496,971 |
|
|
$ |
1,420,184 |
|
|
$ |
1,261,538 |
|
Common Equity to Total Assets |
|
7.0 |
% |
|
|
6.5 |
% |
|
|
6.0 |
% |
Tangible Common Equity to Tangible Assets* |
|
7.0 |
% |
|
|
6.5 |
% |
|
|
6.0 |
% |
Book Value per common share |
$ |
47.73 |
|
|
$ |
45.47 |
|
|
$ |
39.08 |
|
Tangible Book Value per common share* |
$ |
47.61 |
|
|
$ |
45.36 |
|
|
$ |
38.97 |
|
Common equity Tier 1 (“CET 1”) capital ratio (1) |
|
12.2 |
% |
|
|
11.3 |
% |
|
|
9.6 |
% |
Total risk based capital ratio (1) |
|
15.3 |
% |
|
|
14.3 |
% |
|
|
12.2 |
% |
|
|
|
|
|
|
||||||
(1) Regulatory capital ratios as of December 31, 2023 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
Customers Bancorp’s common equity increased
At the Customers Bancorp level, the CET 1 capital 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
At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At December 31, 2023, Tier 1 capital (estimate) and total risk based capital (estimate) were
“Even though we remain well capitalized by all regulatory measures, we are committed to maintaining our CET 1 ratio around
Key Profitability Trends
Net Interest Income
Net interest income totaled
“We experienced continued momentum in net interest income in the fourth quarter, despite elective reductions in loan balances. Loan balance reductions were in part due to exiting certain credits with less attractive pricing and clients without holistic banking relationships. Excluding the outsized accretion recognized in the third quarter on the acquired loan portfolio from the FDIC, our fourth quarter net interest income was in-line relative to the third quarter,” stated Customers Bancorp President Sam Sidhu.
Net interest income totaled
Non-Interest Income
The following table presents details of non-interest income for the periods indicated:
|
Three Months Ended |
|
Increase (Decrease) |
|
Three Months Ended |
|
Increase (Decrease) |
||||||||||||||||
(Dollars in thousands) |
December 31, 2023 |
|
September 30, 2023 |
|
|
December 31, 2023 |
|
December 31, 2022 |
|
||||||||||||||
Commercial lease income |
$ |
9,035 |
|
|
$ |
8,901 |
|
|
$ |
134 |
|
|
$ |
9,035 |
|
|
$ |
8,135 |
|
|
$ |
900 |
|
Loan fees |
|
5,926 |
|
|
|
6,029 |
|
|
|
(103 |
) |
|
|
5,926 |
|
|
|
4,017 |
|
|
|
1,909 |
|
Bank-owned life insurance |
|
2,160 |
|
|
|
1,973 |
|
|
|
187 |
|
|
|
2,160 |
|
|
|
1,975 |
|
|
|
185 |
|
Mortgage warehouse transactional fees |
|
927 |
|
|
|
1,018 |
|
|
|
(91 |
) |
|
|
927 |
|
|
|
1,295 |
|
|
|
(368 |
) |
Gain (loss) on sale of SBA and other loans |
|
(91 |
) |
|
|
(348 |
) |
|
|
257 |
|
|
|
(91 |
) |
|
|
— |
|
|
|
(91 |
) |
Net gain (loss) on sale of investment securities |
|
(145 |
) |
|
|
(429 |
) |
|
|
284 |
|
|
|
(145 |
) |
|
|
(16,937 |
) |
|
|
16,792 |
|
Legal settlement gain |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,519 |
|
|
|
(7,519 |
) |
Other |
|
860 |
|
|
|
631 |
|
|
|
229 |
|
|
|
860 |
|
|
|
1,341 |
|
|
|
(481 |
) |
Total non-interest income |
$ |
18,672 |
|
|
$ |
17,775 |
|
|
$ |
897 |
|
|
$ |
18,672 |
|
|
$ |
7,345 |
|
|
$ |
11,327 |
|
Non-interest income totaled
Non-interest income totaled
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) |
December 31, 2023 |
|
September 30, 2023 |
|
|
December 31, 2023 |
|
December 31, 2022 |
|
||||||||||
Salaries and employee benefits |
$ |
33,965 |
|
$ |
33,845 |
|
$ |
120 |
|
|
$ |
33,965 |
|
$ |
29,194 |
|
$ |
4,771 |
|
Technology, communication and bank operations |
|
16,887 |
|
|
15,667 |
|
|
1,220 |
|
|
|
16,887 |
|
|
18,604 |
|
|
(1,717 |
) |
Commercial lease depreciation |
|
7,357 |
|
|
7,338 |
|
|
19 |
|
|
|
7,357 |
|
|
6,518 |
|
|
839 |
|
Professional services |
|
9,820 |
|
|
8,569 |
|
|
1,251 |
|
|
|
9,820 |
|
|
6,825 |
|
|
2,995 |
|
Loan servicing |
|
3,779 |
|
|
3,858 |
|
|
(79 |
) |
|
|
3,779 |
|
|
4,460 |
|
|
(681 |
) |
Occupancy |
|
2,320 |
|
|
2,471 |
|
|
(151 |
) |
|
|
2,320 |
|
|
3,672 |
|
|
(1,352 |
) |
FDIC assessments, non-income taxes and regulatory fees |
|
13,977 |
|
|
8,551 |
|
|
5,426 |
|
|
|
13,977 |
|
|
2,339 |
|
|
11,638 |
|
Advertising and promotion |
|
850 |
|
|
650 |
|
|
200 |
|
|
|
850 |
|
|
1,111 |
|
|
(261 |
) |
Legal settlement expense |
|
— |
|
|
4,096 |
|
|
(4,096 |
) |
|
|
— |
|
|
— |
|
|
— |
|
Other |
|
4,812 |
|
|
4,421 |
|
|
391 |
|
|
|
4,812 |
|
|
5,696 |
|
|
(884 |
) |
Total non-interest expense |
$ |
93,767 |
|
$ |
89,466 |
|
$ |
4,301 |
|
|
$ |
93,767 |
|
$ |
78,419 |
|
$ |
15,348 |
|
Non-interest expenses totaled
Non-interest expenses totaled
Taxes
Income tax expense decreased by
Income tax expense increased by
The effective tax rate for Q4 2023 was
Outlook
“Looking forward, our strategy and risk management principles will remain unchanged. We’re focused on managing risk, strengthening our deposit franchise, further improving our profitability and maintaining our higher capital ratios. Our deposits are expected to grow modestly with continued improvement in the quality of deposits, reducing higher cost wholesale deposits with lower cost core deposits. We see attractive opportunities to deploy securities cash flows and cash into franchise-enhancing loan growth in 2024. Core EPS (excluding PPP)* significantly exceeded our target of
__________________________________________________ | ||
* |
|
Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
Webcast | ||
Date: | Friday, January 26, 2024 | |
Time: | 9:00 AM EST |
The live audio webcast, presentation slides, and earnings press release will be made available at https://www.customersbank.com/investor-relations/ and at the Customers Bancorp 4th Quarter Earnings Webcast.
You may submit questions in advance of the live webcast by emailing our Communications Director, David Patti at dpatti@customersbank.com; questions may also be asked during the webcast through the webcast application.
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 about
-
#5 in top-performing banks with assets between
and$10 billion in 2022 per American Banker list;$50 billion - #34 out of the 100 largest publicly traded banks in 2023 per Forbes; and
- #64 on Fortune Magazine’s 2022 list of the 100 fastest growing companies in America.
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 impact of COVID-19 and its variants on the
Q4 2023 Overview
The following table presents a summary of key earnings and performance metrics for the quarter ended December 31, 2023 and the preceding four quarters, and full year 2023 and 2022:
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|
||||||||||||||||||||||||||||
EARNINGS SUMMARY - UNAUDITED |
|
||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
(Dollars in thousands, except per share data and stock price data) |
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|
Q4 |
|
Twelve Months Ended December 31, |
|
|||||||||||||||||
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
GAAP Profitability Metrics: |
|
||||||||||||||||||||||||||||
Net income available to common shareholders
|
$ |
58,223 |
|
|
$ |
82,953 |
|
|
$ |
44,007 |
|
|
$ |
50,265 |
|
|
$ |
25,623 |
|
|
$ |
235,448 |
|
|
$ |
218,402 |
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Earnings per share - basic |
$ |
1.86 |
|
|
$ |
2.65 |
|
|
$ |
1.41 |
|
|
$ |
1.58 |
|
|
$ |
0.79 |
|
|
$ |
7.49 |
|
|
$ |
6.69 |
|
|
|
Earnings per share - diluted |
$ |
1.79 |
|
|
$ |
2.58 |
|
|
$ |
1.39 |
|
|
$ |
1.55 |
|
|
$ |
0.77 |
|
|
$ |
7.32 |
|
|
$ |
6.51 |
|
|
|
Book value per common share (1) |
$ |
47.73 |
|
|
$ |
45.47 |
|
|
$ |
42.16 |
|
|
$ |
41.08 |
|
|
$ |
39.08 |
|
|
$ |
47.73 |
|
|
$ |
39.08 |
|
|
|
CUBI stock price (1) |
$ |
57.62 |
|
|
$ |
34.45 |
|
|
$ |
30.26 |
|
|
$ |
18.52 |
|
|
$ |
28.34 |
|
|
$ |
57.62 |
|
|
$ |
28.34 |
|
|
|
CUBI stock price as % of book value (1) |
|
121 |
% |
|
|
76 |
% |
|
|
72 |
% |
|
|
45 |
% |
|
|
73 |
% |
|
|
121 |
% |
|
|
73 |
% |
|
Average shares outstanding - basic |
|
31,385,043 |
|
|
|
31,290,581 |
|
|
|
31,254,125 |
|
|
|
31,819,203 |
|
|
|
32,413,459 |
|
|
|
31,435,647 |
|
|
|
32,632,751 |
|
|
|
Average shares outstanding - diluted |
|
32,521,787 |
|
|
|
32,175,084 |
|
|
|
31,591,142 |
|
|
|
32,345,017 |
|
|
|
33,075,422 |
|
|
|
32,158,788 |
|
|
|
33,547,706 |
|
|
|
Shares outstanding (1) |
|
31,440,906 |
|
|
|
31,311,254 |
|
|
|
31,282,318 |
|
|
|
31,239,750 |
|
|
|
32,373,697 |
|
|
|
31,440,906 |
|
|
|
32,373,697 |
|
|
|
Return on average assets (“ROAA”) |
|
1.16 |
% |
|
|
1.57 |
% |
|
|
0.88 |
% |
|
|
1.03 |
% |
|
|
0.55 |
% |
|
|
1.16 |
% |
|
|
1.13 |
% |
|
|
Return on average common equity (“ROCE”) |
|
15.93 |
% |
|
|
23.97 |
% |
|
|
13.22 |
% |
|
|
16.00 |
% |
|
|
8.05 |
% |
|
|
17.33 |
% |
|
|
17.40 |
% |
|
|
Net interest margin, tax equivalent |
|
3.31 |
% |
|
|
3.70 |
% |
|
|
3.15 |
% |
|
|
2.96 |
% |
|
|
2.67 |
% |
|
|
3.29 |
% |
|
|
3.19 |
% |
|
|
Efficiency ratio |
|
49.08 |
% |
|
|
41.01 |
% |
|
|
49.25 |
% |
|
|
47.71 |
% |
|
|
49.20 |
% |
|
|
46.49 |
% |
|
|
44.81 |
% |
|
|
Non-GAAP Profitability Metrics (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Core earnings |
$ |
61,633 |
|
|
$ |
83,294 |
|
|
$ |
52,163 |
|
|
$ |
51,143 |
|
|
$ |
39,368 |
|
|
$ |
248,233 |
|
|
$ |
256,415 |
|
|
|
Adjusted pre-tax pre-provision net income |
$ |
101,884 |
|
|
$ |
128,564 |
|
|
$ |
96,833 |
|
|
$ |
89,282 |
|
|
$ |
81,377 |
|
|
$ |
416,563 |
|
|
$ |
400,712 |
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Core earnings per share - diluted |
$ |
1.90 |
|
|
$ |
2.59 |
|
|
$ |
1.65 |
|
|
$ |
1.58 |
|
|
$ |
1.19 |
|
|
$ |
7.72 |
|
|
$ |
7.63 |
|
|
|
Tangible book value per common share (1) |
$ |
47.61 |
|
|
$ |
45.36 |
|
|
$ |
42.04 |
|
|
$ |
40.96 |
|
|
$ |
38.97 |
|
|
$ |
47.61 |
|
|
$ |
38.97 |
|
|
|
CUBI stock price as % of tangible book value (1) |
|
121 |
% |
|
|
76 |
% |
|
|
72 |
% |
|
|
45 |
% |
|
|
73 |
% |
|
|
121 |
% |
|
|
73 |
% |
|
Core ROAA |
|
1.22 |
% |
|
|
1.57 |
% |
|
|
1.03 |
% |
|
|
1.05 |
% |
|
|
0.81 |
% |
|
|
1.22 |
% |
|
|
1.32 |
% |
|
|
Core ROCE |
|
16.87 |
% |
|
|
24.06 |
% |
|
|
15.67 |
% |
|
|
16.28 |
% |
|
|
12.36 |
% |
|
|
18.27 |
% |
|
|
20.43 |
% |
|
|
Adjusted ROAA - pre-tax and pre-provision |
|
1.90 |
% |
|
|
2.32 |
% |
|
|
1.79 |
% |
|
|
1.72 |
% |
|
|
1.56 |
% |
|
|
1.94 |
% |
|
|
1.99 |
% |
|
|
Adjusted ROCE - pre-tax and pre-provision |
|
26.82 |
% |
|
|
36.04 |
% |
|
|
28.01 |
% |
|
|
27.33 |
% |
|
|
24.59 |
% |
|
|
29.58 |
% |
|
|
31.16 |
% |
|
|
Net interest margin, tax equivalent, excluding PPP loans |
|
3.33 |
% |
|
|
3.75 |
% |
|
|
3.20 |
% |
|
|
2.80 |
% |
|
|
2.87 |
% |
|
|
3.28 |
% |
|
|
3.16 |
% |
|
|
Core efficiency ratio |
|
46.70 |
% |
|
|
41.04 |
% |
|
|
47.84 |
% |
|
|
47.09 |
% |
|
|
49.12 |
% |
|
|
45.45 |
% |
|
|
43.02 |
% |
|
|
Asset Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net charge-offs |
$ |
17,322 |
|
|
$ |
17,498 |
|
|
$ |
15,564 |
|
|
$ |
18,651 |
|
|
$ |
27,164 |
|
|
$ |
69,035 |
|
|
$ |
66,368 |
|
|
|
Annualized net charge-offs to average total loans and leases |
|
0.51 |
% |
|
|
0.50 |
% |
|
|
0.42 |
% |
|
|
0.49 |
% |
|
|
0.70 |
% |
|
|
0.48 |
% |
|
|
0.45 |
% |
|
|
Non-performing loans (“NPLs”) to total loans and leases (1) |
|
0.21 |
% |
|
|
0.22 |
% |
|
|
0.20 |
% |
|
|
0.21 |
% |
|
|
0.19 |
% |
|
|
0.21 |
% |
|
|
0.19 |
% |
|
|
Reserves to NPLs (1) |
|
499.12 |
% |
|
|
466.11 |
% |
|
|
494.46 |
% |
|
|
405.56 |
% |
|
|
425.95 |
% |
|
|
499.12 |
% |
|
|
425.95 |
% |
|
|
Non-performing assets (“NPAs”) to total assets |
|
0.13 |
% |
|
|
0.14 |
% |
|
|
0.13 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.13 |
% |
|
|
0.15 |
% |
|
|
Customers Bank Capital Ratios (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Common equity Tier 1 capital to risk-weighted assets |
|
13.7 |
% |
|
|
12.97 |
% |
|
|
11.96 |
% |
|
|
11.31 |
% |
|
|
11.21 |
% |
|
|
13.7 |
% |
|
|
11.21 |
% |
|
|
Tier 1 capital to risk-weighted assets |
|
13.7 |
% |
|
|
12.97 |
% |
|
|
11.96 |
% |
|
|
11.31 |
% |
|
|
11.21 |
% |
|
|
13.7 |
% |
|
|
11.21 |
% |
|
|
Total capital to risk-weighted assets |
|
15.3 |
% |
|
|
14.45 |
% |
|
|
13.38 |
% |
|
|
12.64 |
% |
|
|
12.40 |
% |
|
|
15.3 |
% |
|
|
12.40 |
% |
|
|
Tier 1 capital to average assets (leverage ratio) |
|
8.7 |
% |
|
|
8.25 |
% |
|
|
8.00 |
% |
|
|
8.09 |
% |
|
|
8.15 |
% |
|
|
8.7 |
% |
|
|
8.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(1) Metric is a spot balance for the last day of each quarter presented. |
|||||||||||||||||||||||||||||
(2) Customers' reasons for the use of these non-GAAP measures and a detailed reconciliation between the non-GAAP measures and the comparable GAAP amounts are included at the end of this document. |
|||||||||||||||||||||||||||||
(3) Regulatory capital ratios are estimated for Q4 2023 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 |
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED |
||||||||||||||||||||||||||
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|||||||||||||||
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|
Q4 |
|
December 31, |
|||||||||||||||
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||||||
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loans and leases |
$ |
239,453 |
|
|
$ |
271,107 |
|
|
$ |
241,745 |
|
|
$ |
244,212 |
|
$ |
217,471 |
|
|
$ |
996,517 |
|
|
$ |
743,949 |
|
Investment securities |
|
51,074 |
|
|
|
54,243 |
|
|
|
48,026 |
|
|
|
47,316 |
|
|
42,953 |
|
|
|
200,659 |
|
|
|
119,236 |
|
Interest earning deposits |
|
44,104 |
|
|
|
43,800 |
|
|
|
27,624 |
|
|
|
10,395 |
|
|
6,754 |
|
|
|
125,923 |
|
|
|
10,952 |
|
Loans held for sale |
|
8,707 |
|
|
|
4,664 |
|
|
|
11,149 |
|
|
|
11,701 |
|
|
1,269 |
|
|
|
36,221 |
|
|
|
1,364 |
|
Other |
|
2,577 |
|
|
|
2,526 |
|
|
|
1,616 |
|
|
|
1,321 |
|
|
1,200 |
|
|
|
8,040 |
|
|
|
9,872 |
|
Total interest income |
|
345,915 |
|
|
|
376,340 |
|
|
|
330,160 |
|
|
|
314,945 |
|
|
269,647 |
|
|
|
1,367,360 |
|
|
|
885,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Deposits |
|
150,307 |
|
|
|
145,825 |
|
|
|
136,375 |
|
|
|
143,930 |
|
|
124,366 |
|
|
|
576,437 |
|
|
|
226,239 |
|
FHLB advances |
|
18,868 |
|
|
|
26,485 |
|
|
|
24,285 |
|
|
|
10,370 |
|
|
4,464 |
|
|
|
80,008 |
|
|
|
11,464 |
|
FRB advances |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,286 |
|
|
— |
|
|
|
6,286 |
|
|
|
— |
|
Subordinated debt |
|
2,688 |
|
|
|
2,689 |
|
|
|
2,689 |
|
|
|
2,689 |
|
|
2,688 |
|
|
|
10,755 |
|
|
|
10,755 |
|
Other borrowings |
|
1,546 |
|
|
|
1,568 |
|
|
|
1,540 |
|
|
|
1,771 |
|
|
2,992 |
|
|
|
6,425 |
|
|
|
13,195 |
|
Total interest expense |
|
173,409 |
|
|
|
176,567 |
|
|
|
164,889 |
|
|
|
165,046 |
|
|
134,510 |
|
|
|
679,911 |
|
|
|
261,653 |
|
Net interest income |
|
172,506 |
|
|
|
199,773 |
|
|
|
165,271 |
|
|
|
149,899 |
|
|
135,137 |
|
|
|
687,449 |
|
|
|
623,720 |
|
Provision for credit losses |
|
13,523 |
|
|
|
17,856 |
|
|
|
23,629 |
|
|
|
19,603 |
|
|
28,216 |
|
|
|
74,611 |
|
|
|
60,066 |
|
Net interest income after provision for credit losses |
|
158,983 |
|
|
|
181,917 |
|
|
|
141,642 |
|
|
|
130,296 |
|
|
106,921 |
|
|
|
612,838 |
|
|
|
563,654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial lease income |
|
9,035 |
|
|
|
8,901 |
|
|
|
8,917 |
|
|
|
9,326 |
|
|
8,135 |
|
|
|
36,179 |
|
|
|
27,719 |
|
Loan fees |
|
5,926 |
|
|
|
6,029 |
|
|
|
4,271 |
|
|
|
3,990 |
|
|
4,017 |
|
|
|
20,216 |
|
|
|
12,188 |
|
Bank-owned life insurance |
|
2,160 |
|
|
|
1,973 |
|
|
|
4,997 |
|
|
|
2,647 |
|
|
1,975 |
|
|
|
11,777 |
|
|
|
15,697 |
|
Mortgage warehouse transactional fees |
|
927 |
|
|
|
1,018 |
|
|
|
1,376 |
|
|
|
1,074 |
|
|
1,295 |
|
|
|
4,395 |
|
|
|
6,738 |
|
Gain (loss) on sale of SBA and other loans |
|
(91 |
) |
|
|
(348 |
) |
|
|
(761 |
) |
|
|
— |
|
|
— |
|
|
|
(1,200 |
) |
|
|
3,155 |
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
(5,037 |
) |
|
|
— |
|
|
— |
|
|
|
(5,037 |
) |
|
|
— |
|
Loss on sale of consumer installment loans |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(23,465 |
) |
Net gain (loss) on sale of investment securities |
|
(145 |
) |
|
|
(429 |
) |
|
|
— |
|
|
|
— |
|
|
(16,937 |
) |
|
|
(574 |
) |
|
|
(23,164 |
) |
Legal settlement gain |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
7,519 |
|
|
|
— |
|
|
|
7,519 |
|
Other |
|
860 |
|
|
|
631 |
|
|
|
2,234 |
|
|
|
1,084 |
|
|
1,341 |
|
|
|
4,809 |
|
|
|
5,885 |
|
Total non-interest income |
|
18,672 |
|
|
|
17,775 |
|
|
|
15,997 |
|
|
|
18,121 |
|
|
7,345 |
|
|
|
70,565 |
|
|
|
32,272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Salaries and employee benefits |
|
33,965 |
|
|
|
33,845 |
|
|
|
33,120 |
|
|
|
32,345 |
|
|
29,194 |
|
|
|
133,275 |
|
|
|
112,365 |
|
Technology, communication and bank operations |
|
16,887 |
|
|
|
15,667 |
|
|
|
16,407 |
|
|
|
16,589 |
|
|
18,604 |
|
|
|
65,550 |
|
|
|
84,998 |
|
Commercial lease depreciation |
|
7,357 |
|
|
|
7,338 |
|
|
|
7,328 |
|
|
|
7,875 |
|
|
6,518 |
|
|
|
29,898 |
|
|
|
22,978 |
|
Professional services |
|
9,820 |
|
|
|
8,569 |
|
|
|
9,192 |
|
|
|
7,596 |
|
|
6,825 |
|
|
|
35,177 |
|
|
|
27,465 |
|
Loan servicing |
|
3,779 |
|
|
|
3,858 |
|
|
|
4,777 |
|
|
|
4,661 |
|
|
4,460 |
|
|
|
17,075 |
|
|
|
15,023 |
|
Occupancy |
|
2,320 |
|
|
|
2,471 |
|
|
|
2,519 |
|
|
|
2,760 |
|
|
3,672 |
|
|
|
10,070 |
|
|
|
13,606 |
|
FDIC assessments, non-income taxes and regulatory fees |
|
13,977 |
|
|
|
8,551 |
|
|
|
9,780 |
|
|
|
2,728 |
|
|
2,339 |
|
|
|
35,036 |
|
|
|
8,869 |
|
Advertising and promotion |
|
850 |
|
|
|
650 |
|
|
|
546 |
|
|
|
1,049 |
|
|
1,111 |
|
|
|
3,095 |
|
|
|
2,541 |
|
Legal settlement expense |
|
— |
|
|
|
4,096 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
4,096 |
|
|
|
— |
|
Other |
|
4,812 |
|
|
|
4,421 |
|
|
|
5,628 |
|
|
|
4,530 |
|
|
5,696 |
|
|
|
19,391 |
|
|
|
16,784 |
|
Total non-interest expense |
|
93,767 |
|
|
|
89,466 |
|
|
|
89,297 |
|
|
|
80,133 |
|
|
78,419 |
|
|
|
352,663 |
|
|
|
304,629 |
|
Income before income tax expense |
|
83,888 |
|
|
|
110,226 |
|
|
|
68,342 |
|
|
|
68,284 |
|
|
35,847 |
|
|
|
330,740 |
|
|
|
291,297 |
|
Income tax expense |
|
21,796 |
|
|
|
23,470 |
|
|
|
20,768 |
|
|
|
14,563 |
|
|
7,136 |
|
|
|
80,597 |
|
|
|
63,263 |
|
Net income |
|
62,092 |
|
|
|
86,756 |
|
|
|
47,574 |
|
|
|
53,721 |
|
|
28,711 |
|
|
|
250,143 |
|
|
|
228,034 |
|
Preferred stock dividends |
|
3,869 |
|
|
|
3,803 |
|
|
|
3,567 |
|
|
|
3,456 |
|
|
3,088 |
|
|
|
14,695 |
|
|
|
9,632 |
|
Net income available to common shareholders |
$ |
58,223 |
|
|
$ |
82,953 |
|
|
$ |
44,007 |
|
|
$ |
50,265 |
|
$ |
25,623 |
|
|
$ |
235,448 |
|
|
$ |
218,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Basic earnings per common share |
$ |
1.86 |
|
|
$ |
2.65 |
|
|
$ |
1.41 |
|
|
$ |
1.58 |
|
$ |
0.79 |
|
|
$ |
7.49 |
|
|
$ |
6.69 |
|
Diluted earnings per common share |
|
1.79 |
|
|
|
2.58 |
|
|
|
1.39 |
|
|
|
1.55 |
|
|
0.77 |
|
|
|
7.32 |
|
|
|
6.51 |
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||
CONSOLIDATED BALANCE SHEET - UNAUDITED |
|||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
||||||||||
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks |
$ |
45,210 |
|
|
$ |
68,288 |
|
|
$ |
54,127 |
|
|
$ |
77,251 |
|
|
$ |
58,025 |
|
Interest earning deposits |
|
3,801,136 |
|
|
|
3,351,686 |
|
|
|
3,101,097 |
|
|
|
1,969,434 |
|
|
|
397,781 |
|
Cash and cash equivalents |
|
3,846,346 |
|
|
|
3,419,974 |
|
|
|
3,155,224 |
|
|
|
2,046,685 |
|
|
|
455,806 |
|
Investment securities, at fair value |
|
2,405,640 |
|
|
|
2,773,207 |
|
|
|
2,824,638 |
|
|
|
2,926,969 |
|
|
|
2,987,500 |
|
Investment securities held to maturity |
|
1,103,170 |
|
|
|
1,178,370 |
|
|
|
1,258,560 |
|
|
|
870,294 |
|
|
|
840,259 |
|
Loans held for sale |
|
340,317 |
|
|
|
150,368 |
|
|
|
78,108 |
|
|
|
424,057 |
|
|
|
328,312 |
|
Loans receivable, mortgage warehouse, at fair value |
|
897,912 |
|
|
|
962,566 |
|
|
|
1,006,268 |
|
|
|
1,247,367 |
|
|
|
1,323,312 |
|
Loans receivable, PPP |
|
74,735 |
|
|
|
137,063 |
|
|
|
188,763 |
|
|
|
246,258 |
|
|
|
998,153 |
|
Loans and leases receivable |
|
11,889,120 |
|
|
|
12,463,485 |
|
|
|
12,637,768 |
|
|
|
13,145,352 |
|
|
|
13,144,894 |
|
Allowance for credit losses on loans and leases |
|
(135,311 |
) |
|
|
(139,213 |
) |
|
|
(139,656 |
) |
|
|
(130,281 |
) |
|
|
(130,924 |
) |
Total loans and leases receivable, net of allowance for credit losses on loans and leases |
|
12,726,456 |
|
|
|
13,423,901 |
|
|
|
13,693,143 |
|
|
|
14,508,696 |
|
|
|
15,335,435 |
|
FHLB, Federal Reserve Bank, and other restricted stock |
|
109,548 |
|
|
|
126,098 |
|
|
|
126,240 |
|
|
|
124,733 |
|
|
|
74,196 |
|
Accrued interest receivable |
|
114,766 |
|
|
|
123,984 |
|
|
|
119,501 |
|
|
|
123,754 |
|
|
|
123,374 |
|
Bank premises and equipment, net |
|
7,371 |
|
|
|
7,789 |
|
|
|
8,031 |
|
|
|
8,581 |
|
|
|
9,025 |
|
Bank-owned life insurance |
|
292,193 |
|
|
|
291,670 |
|
|
|
290,322 |
|
|
|
339,607 |
|
|
|
338,441 |
|
Goodwill and other intangibles |
|
3,629 |
|
|
|
3,629 |
|
|
|
3,629 |
|
|
|
3,629 |
|
|
|
3,629 |
|
Other assets |
|
366,829 |
|
|
|
358,162 |
|
|
|
471,169 |
|
|
|
374,609 |
|
|
|
400,135 |
|
Total assets |
$ |
21,316,265 |
|
|
$ |
21,857,152 |
|
|
$ |
22,028,565 |
|
|
$ |
21,751,614 |
|
|
$ |
20,896,112 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
Demand, non-interest bearing deposits |
$ |
4,422,494 |
|
|
$ |
4,758,682 |
|
|
$ |
4,490,198 |
|
|
$ |
3,487,517 |
|
|
$ |
1,885,045 |
|
Interest bearing deposits |
|
13,497,742 |
|
|
|
13,436,682 |
|
|
|
13,460,233 |
|
|
|
14,236,100 |
|
|
|
16,271,908 |
|
Total deposits |
|
17,920,236 |
|
|
|
18,195,364 |
|
|
|
17,950,431 |
|
|
|
17,723,617 |
|
|
|
18,156,953 |
|
FHLB advances |
|
1,203,207 |
|
|
|
1,529,839 |
|
|
|
2,046,142 |
|
|
|
2,052,143 |
|
|
|
800,000 |
|
Other borrowings |
|
123,840 |
|
|
|
123,775 |
|
|
|
123,710 |
|
|
|
123,645 |
|
|
|
123,580 |
|
Subordinated debt |
|
182,230 |
|
|
|
182,161 |
|
|
|
182,091 |
|
|
|
182,021 |
|
|
|
181,952 |
|
Accrued interest payable and other liabilities |
|
248,358 |
|
|
|
264,406 |
|
|
|
269,539 |
|
|
|
249,168 |
|
|
|
230,666 |
|
Total liabilities |
|
19,677,871 |
|
|
|
20,295,545 |
|
|
|
20,571,913 |
|
|
|
20,330,594 |
|
|
|
19,493,151 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock |
|
137,794 |
|
|
|
137,794 |
|
|
|
137,794 |
|
|
|
137,794 |
|
|
|
137,794 |
|
Common stock |
|
35,459 |
|
|
|
35,330 |
|
|
|
35,301 |
|
|
|
35,258 |
|
|
|
35,012 |
|
Additional paid in capital |
|
564,538 |
|
|
|
559,346 |
|
|
|
555,737 |
|
|
|
552,255 |
|
|
|
551,721 |
|
Retained earnings |
|
1,159,582 |
|
|
|
1,101,359 |
|
|
|
1,018,406 |
|
|
|
974,399 |
|
|
|
924,134 |
|
Accumulated other comprehensive income (loss), net |
|
(136,569 |
) |
|
|
(149,812 |
) |
|
|
(168,176 |
) |
|
|
(156,276 |
) |
|
|
(163,096 |
) |
Treasury stock, at cost |
|
(122,410 |
) |
|
|
(122,410 |
) |
|
|
(122,410 |
) |
|
|
(122,410 |
) |
|
|
(82,604 |
) |
Total shareholders’ equity |
|
1,638,394 |
|
|
|
1,561,607 |
|
|
|
1,456,652 |
|
|
|
1,421,020 |
|
|
|
1,402,961 |
|
Total liabilities and shareholders’ equity |
$ |
21,316,265 |
|
|
$ |
21,857,152 |
|
|
$ |
22,028,565 |
|
|
$ |
21,751,614 |
|
|
$ |
20,896,112 |
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||||
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED |
||||||||||||||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|||||||||||||||||||||||||
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|||||||||||||||||||||
|
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 |
$ |
3,191,677 |
|
$ |
44,104 |
|
5.48 |
% |
|
$ |
3,211,753 |
|
$ |
43,800 |
|
5.41 |
% |
|
$ |
693,563 |
|
$ |
6,754 |
|
3.86 |
% |
Investment securities (1) |
|
4,007,418 |
|
|
51,074 |
|
5.10 |
% |
|
|
4,240,116 |
|
|
54,243 |
|
5.12 |
% |
|
|
4,061,555 |
|
|
42,953 |
|
4.23 |
% |
Loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial & industrial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Specialty lending loans and leases (2) |
|
5,574,149 |
|
|
130,838 |
|
9.31 |
% |
|
|
5,717,252 |
|
|
157,671 |
|
10.94 |
% |
|
|
5,529,567 |
|
|
90,885 |
|
6.52 |
% |
Other commercial & industrial loans (2) |
|
1,550,201 |
|
|
27,214 |
|
6.96 |
% |
|
|
1,613,614 |
|
|
28,012 |
|
6.89 |
% |
|
|
1,670,000 |
|
|
22,796 |
|
5.42 |
% |
Commercial loans to mortgage companies |
|
997,353 |
|
|
13,726 |
|
5.46 |
% |
|
|
1,159,698 |
|
|
16,916 |
|
5.79 |
% |
|
|
1,376,760 |
|
|
17,701 |
|
5.10 |
% |
Multifamily loans |
|
2,131,750 |
|
|
22,347 |
|
4.16 |
% |
|
|
2,141,384 |
|
|
21,292 |
|
3.94 |
% |
|
|
2,235,885 |
|
|
22,481 |
|
3.99 |
% |
Loans receivable, PPP |
|
115,851 |
|
|
839 |
|
2.87 |
% |
|
|
166,164 |
|
|
604 |
|
1.44 |
% |
|
|
1,065,919 |
|
|
7,249 |
|
2.70 |
% |
Non-owner occupied commercial real estate loans |
|
1,392,684 |
|
|
20,686 |
|
5.89 |
% |
|
|
1,425,831 |
|
|
21,208 |
|
5.90 |
% |
|
|
1,430,420 |
|
|
18,536 |
|
5.14 |
% |
Residential mortgages |
|
526,422 |
|
|
5,942 |
|
4.48 |
% |
|
|
528,022 |
|
|
5,965 |
|
4.48 |
% |
|
|
524,344 |
|
|
5,462 |
|
4.13 |
% |
Installment loans |
|
1,198,043 |
|
|
26,568 |
|
8.80 |
% |
|
|
1,147,069 |
|
|
24,103 |
|
8.34 |
% |
|
|
1,555,108 |
|
|
33,630 |
|
8.58 |
% |
Total loans and leases (3) |
|
13,486,453 |
|
|
248,160 |
|
7.30 |
% |
|
|
13,899,034 |
|
|
275,771 |
|
7.87 |
% |
|
|
15,388,003 |
|
|
218,740 |
|
5.64 |
% |
Other interest-earning assets |
|
116,756 |
|
|
2,577 |
|
8.75 |
% |
|
|
134,416 |
|
|
2,526 |
|
7.45 |
% |
|
|
67,907 |
|
|
1,200 |
|
7.01 |
% |
Total interest-earning assets |
|
20,802,304 |
|
|
345,915 |
|
6.61 |
% |
|
|
21,485,319 |
|
|
376,340 |
|
6.96 |
% |
|
|
20,211,028 |
|
|
269,647 |
|
5.30 |
% |
Non-interest-earning assets |
|
449,969 |
|
|
|
|
|
|
492,691 |
|
|
|
|
|
|
506,334 |
|
|
|
|
||||||
Total assets |
$ |
21,252,273 |
|
|
|
|
|
$ |
21,978,010 |
|
|
|
|
|
$ |
20,717,362 |
|
|
|
|
||||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest checking accounts |
$ |
5,656,212 |
|
$ |
62,041 |
|
4.35 |
% |
|
$ |
5,758,215 |
|
$ |
58,637 |
|
4.04 |
% |
|
$ |
8,536,962 |
|
$ |
70,041 |
|
3.26 |
% |
Money market deposit accounts |
|
2,802,309 |
|
|
29,990 |
|
4.25 |
% |
|
|
2,181,184 |
|
|
22,983 |
|
4.18 |
% |
|
|
3,094,206 |
|
|
21,220 |
|
2.72 |
% |
Other savings accounts |
|
1,218,118 |
|
|
13,849 |
|
4.51 |
% |
|
|
1,077,298 |
|
|
11,582 |
|
4.27 |
% |
|
|
669,466 |
|
|
3,368 |
|
2.00 |
% |
Certificates of deposit |
|
3,625,311 |
|
|
44,427 |
|
4.86 |
% |
|
|
4,466,522 |
|
|
52,623 |
|
4.67 |
% |
|
|
3,259,801 |
|
|
29,737 |
|
3.62 |
% |
Total interest-bearing deposits (4) |
|
13,301,950 |
|
|
150,307 |
|
4.48 |
% |
|
|
13,483,219 |
|
|
145,825 |
|
4.29 |
% |
|
|
15,560,435 |
|
|
124,366 |
|
3.17 |
% |
Federal funds purchased |
|
— |
|
|
— |
|
— |
% |
|
|
— |
|
|
— |
|
— |
% |
|
|
151,467 |
|
|
1,437 |
|
3.76 |
% |
Borrowings |
|
1,816,047 |
|
|
23,102 |
|
5.05 |
% |
|
|
2,328,955 |
|
|
30,742 |
|
5.24 |
% |
|
|
819,032 |
|
|
8,707 |
|
4.22 |
% |
Total interest-bearing liabilities |
|
15,117,997 |
|
|
173,409 |
|
4.55 |
% |
|
|
15,812,174 |
|
|
176,567 |
|
4.43 |
% |
|
|
16,530,934 |
|
|
134,510 |
|
3.23 |
% |
Non-interest-bearing deposits (4) |
|
4,270,557 |
|
|
|
|
|
|
4,347,977 |
|
|
|
|
|
|
2,514,316 |
|
|
|
|
||||||
Total deposits and borrowings |
|
19,388,554 |
|
|
|
3.55 |
% |
|
|
20,160,151 |
|
|
|
3.48 |
% |
|
|
19,045,250 |
|
|
|
2.80 |
% |
|||
Other non-interest-bearing liabilities |
|
276,198 |
|
|
|
|
|
|
306,822 |
|
|
|
|
|
|
271,129 |
|
|
|
|
||||||
Total liabilities |
|
19,664,752 |
|
|
|
|
|
|
20,466,973 |
|
|
|
|
|
|
19,316,379 |
|
|
|
|
||||||
Shareholders’ equity |
|
1,587,521 |
|
|
|
|
|
|
1,511,037 |
|
|
|
|
|
|
1,400,983 |
|
|
|
|
||||||
Total liabilities and shareholders’ equity |
$ |
21,252,273 |
|
|
|
|
|
$ |
21,978,010 |
|
|
|
|
|
$ |
20,717,362 |
|
|
|
|
||||||
Net interest income |
|
|
|
172,506 |
|
|
|
|
|
|
199,773 |
|
|
|
|
|
|
135,137 |
|
|
||||||
Tax-equivalent adjustment |
|
|
|
398 |
|
|
|
|
|
|
405 |
|
|
|
|
|
|
342 |
|
|
||||||
Net interest earnings |
|
|
$ |
172,904 |
|
|
|
|
|
$ |
200,178 |
|
|
|
|
|
$ |
135,479 |
|
|
||||||
Interest spread |
|
|
|
|
3.06 |
% |
|
|
|
|
|
3.48 |
% |
|
|
|
|
|
2.50 |
% |
||||||
Net interest margin |
|
|
|
|
3.30 |
% |
|
|
|
|
|
3.70 |
% |
|
|
|
|
|
2.66 |
% |
||||||
Net interest margin tax equivalent |
|
|
|
|
3.31 |
% |
|
|
|
|
|
3.70 |
% |
|
|
|
|
|
2.67 |
% |
||||||
Net interest margin tax equivalent excl. PPP (5) |
|
|
|
|
3.33 |
% |
|
|
|
|
|
3.75 |
% |
|
|
|
|
|
2.87 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(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 |
||||||||||||||||||||||||||
(5) Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of |
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED (CONTINUED) |
|||||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Twelve Months Ended |
||||||||||||||||
|
December 31, 2023 |
|
December 31, 2022 |
||||||||||||||
|
Average Balance |
|
Interest Income or Expense |
|
Average Yield or Cost (%) |
|
Average Balance |
|
Interest Income or Expense |
|
Average Yield or Cost (%) |
||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest earning deposits |
$ |
2,375,488 |
|
$ |
125,923 |
|
5.30 |
% |
|
$ |
620,071 |
|
$ |
10,952 |
|
1.77 |
% |
Investment securities (1) |
|
4,057,564 |
|
|
200,659 |
|
4.95 |
% |
|
|
3,992,934 |
|
|
119,236 |
|
2.99 |
% |
Loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & industrial: |
|||||||||||||||||
Specialty lending loans and leases (2) |
5,704,220 |
513,976 |
9.01 |
% | 4,357,995 |
218,189 |
5.01 |
% | |||||||||
Other commercial & industrial loans (2) |
|
1,634,937 |
|
|
106,824 |
|
6.53 |
% |
|
|
1,540,435 |
|
|
69,564 |
|
4.52 |
% |
Commercial loans to mortgage companies |
|
1,179,141 |
|
|
67,660 |
|
5.74 |
% |
|
|
1,682,471 |
|
|
64,413 |
|
3.83 |
% |
Multifamily loans |
|
2,165,067 |
|
|
85,204 |
|
3.94 |
% |
|
|
1,957,672 |
|
|
73,987 |
|
3.78 |
% |
Loans receivable, PPP |
|
341,987 |
|
|
26,627 |
|
7.79 |
% |
|
|
1,724,659 |
|
|
79,381 |
|
4.60 |
% |
Non-owner occupied commercial real estate loans |
|
1,423,929 |
|
|
81,970 |
|
5.76 |
% |
|
|
1,356,086 |
|
|
59,087 |
|
4.36 |
% |
Residential mortgages |
|
533,213 |
|
|
23,240 |
|
4.36 |
% |
|
|
492,870 |
|
|
19,048 |
|
3.86 |
% |
Installment loans |
|
1,437,078 |
|
|
127,237 |
|
8.85 |
% |
|
|
1,798,977 |
|
|
161,644 |
|
8.99 |
% |
Total loans and leases (3) |
|
14,419,572 |
|
|
1,032,738 |
|
7.16 |
% |
|
|
14,911,165 |
|
|
745,313 |
|
5.00 |
% |
Other interest-earning assets |
|
118,574 |
|
|
8,040 |
|
6.78 |
% |
|
|
64,204 |
|
|
9,872 |
|
NM (6) |
|
Total interest-earning assets |
|
20,971,198 |
|
|
1,367,360 |
|
6.52 |
% |
|
|
19,588,374 |
|
|
885,373 |
|
4.52 |
% |
Non-interest-earning assets |
|
515,185 |
|
|
|
|
|
|
521,370 |
|
|
|
|
||||
Total assets |
$ |
21,486,383 |
|
|
|
|
|
$ |
20,109,744 |
|
|
|
|
||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest checking accounts |
$ |
6,048,797 |
|
$ |
241,025 |
|
3.98 |
% |
|
$ |
6,853,533 |
|
$ |
125,100 |
|
1.83 |
% |
Money market deposit accounts |
|
2,358,437 |
|
|
93,434 |
|
3.96 |
% |
|
|
4,615,574 |
|
|
57,765 |
|
1.25 |
% |
Other savings accounts |
|
1,029,951 |
|
|
41,556 |
|
4.03 |
% |
|
|
716,838 |
|
|
6,727 |
|
0.94 |
% |
Certificates of deposit |
|
4,401,855 |
|
|
200,422 |
|
4.55 |
% |
|
|
1,352,787 |
|
|
36,647 |
|
2.71 |
% |
Total interest-bearing deposits (4) |
|
13,839,040 |
|
|
576,437 |
|
4.17 |
% |
|
|
13,538,732 |
|
|
226,239 |
|
1.67 |
% |
Federal funds purchased |
|
3,781 |
|
|
188 |
|
4.97 |
% |
|
|
349,581 |
|
|
5,811 |
|
1.66 |
% |
Borrowings |
|
2,073,553 |
|
|
103,286 |
|
4.98 |
% |
|
|
792,563 |
|
|
29,603 |
|
3.74 |
% |
Total interest-bearing liabilities |
|
15,916,374 |
|
|
679,911 |
|
4.27 |
% |
|
|
14,680,876 |
|
|
261,653 |
|
1.78 |
% |
Non-interest-bearing deposits (4) |
|
3,801,053 |
|
|
|
|
|
|
3,780,185 |
|
|
|
|
||||
Total deposits and borrowings |
|
19,717,427 |
|
|
|
3.45 |
% |
|
|
18,461,061 |
|
|
|
1.42 |
% |
||
Other non-interest-bearing liabilities |
|
272,599 |
|
|
|
|
|
|
255,911 |
|
|
|
|
||||
Total liabilities |
|
19,990,026 |
|
|
|
|
|
|
18,716,972 |
|
|
|
|
||||
Shareholders’ equity |
|
1,496,357 |
|
|
|
|
|
|
1,392,772 |
|
|
|
|
||||
Total liabilities and shareholders’ equity |
$ |
21,486,383 |
|
|
|
|
|
$ |
20,109,744 |
|
|
|
|
||||
Net interest income |
|
|
|
687,449 |
|
|
|
|
|
|
623,720 |
|
|
||||
Tax-equivalent adjustment |
|
|
|
1,568 |
|
|
|
|
|
|
1,185 |
|
|
||||
Net interest earnings |
|
|
$ |
689,017 |
|
|
|
|
|
$ |
624,905 |
|
|
||||
Interest spread |
|
|
|
|
3.07 |
% |
|
|
|
|
|
3.10 |
% |
||||
Net interest margin |
|
|
|
|
3.28 |
% |
|
|
|
|
|
3.18 |
% |
||||
Net interest margin tax equivalent |
|
|
|
|
3.29 |
% |
|
|
|
|
|
3.19 |
% |
||||
Net interest margin tax equivalent excl. PPP (5) |
|
|
|
|
3.28 |
% |
|
|
|
|
|
3.16 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(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 |
|||||||||||||||||
(5) Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of |
|||||||||||||||||
(6) Not meaningful. |
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||
PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED |
||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|||||
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|||||
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|||||
Loans and leases held for investment |
|
|
|
|
|
|
|
|
|
|||||
Commercial: |
|
|
|
|
|
|
|
|
|
|||||
Commercial & industrial: |
|
|
|
|
|
|
|
|
|
|||||
Specialty lending |
$ |
5,006,693 |
|
$ |
5,422,161 |
|
$ |
5,534,832 |
|
$ |
5,519,176 |
|
$ |
5,412,887 |
Other commercial & industrial |
|
1,087,582 |
|
|
1,115,364 |
|
|
1,052,145 |
|
|
1,168,161 |
|
|
1,135,336 |
Loans to mortgage companies |
|
1,014,742 |
|
|
1,042,549 |
|
|
1,108,598 |
|
|
1,374,894 |
|
|
1,447,919 |
Multifamily |
|
2,138,622 |
|
|
2,130,213 |
|
|
2,151,734 |
|
|
2,195,211 |
|
|
2,213,019 |
Commercial real estate owner occupied |
|
797,319 |
|
|
794,815 |
|
|
842,042 |
|
|
895,314 |
|
|
885,339 |
Loans receivable, PPP |
|
74,735 |
|
|
137,063 |
|
|
188,763 |
|
|
246,258 |
|
|
998,153 |
Commercial real estate non-owner occupied |
|
1,177,650 |
|
|
1,178,203 |
|
|
1,211,091 |
|
|
1,245,248 |
|
|
1,290,730 |
Construction |
|
166,393 |
|
|
252,588 |
|
|
212,214 |
|
|
188,123 |
|
|
162,009 |
Total commercial loans and leases |
|
11,463,736 |
|
|
12,072,956 |
|
|
12,301,419 |
|
|
12,832,385 |
|
|
13,545,392 |
Consumer: |
|
|
|
|
|
|
|
|
|
|||||
Residential |
|
484,435 |
|
|
483,133 |
|
|
487,199 |
|
|
494,815 |
|
|
497,952 |
Manufactured housing |
|
38,670 |
|
|
40,129 |
|
|
41,664 |
|
|
43,272 |
|
|
45,076 |
Installment: |
|
|
|
|
|
|
|
|
|
|||||
Personal |
|
555,533 |
|
|
629,843 |
|
|
752,470 |
|
|
849,420 |
|
|
964,641 |
Other |
|
319,393 |
|
|
337,053 |
|
|
250,047 |
|
|
419,085 |
|
|
413,298 |
Total installment loans |
|
874,926 |
|
|
966,896 |
|
|
1,002,517 |
|
|
1,268,505 |
|
|
1,377,939 |
Total consumer loans |
|
1,398,031 |
|
|
1,490,158 |
|
|
1,531,380 |
|
|
1,806,592 |
|
|
1,920,967 |
Total loans and leases held for investment |
$ |
12,861,767 |
|
$ |
13,563,114 |
|
$ |
13,832,799 |
|
$ |
14,638,977 |
|
$ |
15,466,359 |
|
|
|
|
|
|
|
|
|
|
|||||
Loans held for sale |
|
|
|
|
|
|
|
|
|
|||||
Commercial: |
|
|
|
|
|
|
|
|
|
|||||
Multifamily |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
4,051 |
|
$ |
4,079 |
Commercial real estate non-owner occupied |
|
— |
|
|
— |
|
|
— |
|
|
16,000 |
|
|
— |
Total commercial loans and leases |
|
— |
|
|
— |
|
|
— |
|
|
20,051 |
|
|
4,079 |
Consumer: |
|
|
|
|
|
|
|
|
|
|||||
Residential |
|
1,215 |
|
|
1,005 |
|
|
1,234 |
|
|
821 |
|
|
829 |
Installment: |
|
|
|
|
|
|
|
|
|
|||||
Personal |
|
151,040 |
|
|
124,848 |
|
|
76,874 |
|
|
307,336 |
|
|
133,801 |
Other |
|
188,062 |
|
|
24,515 |
|
|
— |
|
|
95,849 |
|
|
189,603 |
Total installment loans |
|
339,102 |
|
|
149,363 |
|
|
76,874 |
|
|
403,185 |
|
|
323,404 |
Total consumer loans |
|
340,317 |
|
|
150,368 |
|
|
78,108 |
|
|
404,006 |
|
|
324,233 |
Total loans held for sale |
$ |
340,317 |
|
$ |
150,368 |
|
$ |
78,108 |
|
$ |
424,057 |
|
$ |
328,312 |
|
|
|
|
|
|
|
|
|
|
|||||
Total loans and leases portfolio |
$ |
13,202,084 |
|
$ |
13,713,482 |
|
$ |
13,910,907 |
|
$ |
15,063,034 |
|
$ |
15,794,671 |
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||
PERIOD END DEPOSIT COMPOSITION - UNAUDITED |
||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|||||
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|||||
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|||||
|
|
|
|
|
|
|
|
|
|
|||||
Demand, non-interest bearing |
$ |
4,422,494 |
|
$ |
4,758,682 |
|
$ |
4,490,198 |
|
$ |
3,487,517 |
|
$ |
1,885,045 |
Demand, interest bearing |
|
5,580,527 |
|
|
5,824,410 |
|
|
5,551,037 |
|
|
5,791,302 |
|
|
8,476,027 |
Total demand deposits |
|
10,003,021 |
|
|
10,583,092 |
|
|
10,041,235 |
|
|
9,278,819 |
|
|
10,361,072 |
Savings |
|
1,402,941 |
|
|
1,118,353 |
|
|
1,048,229 |
|
|
924,359 |
|
|
811,798 |
Money market |
|
3,226,395 |
|
|
2,499,593 |
|
|
2,004,264 |
|
|
2,019,633 |
|
|
2,734,217 |
Time deposits |
|
3,287,879 |
|
|
3,994,326 |
|
|
4,856,703 |
|
|
5,500,806 |
|
|
4,249,866 |
Total deposits |
$ |
17,920,236 |
|
$ |
18,195,364 |
|
$ |
17,950,431 |
|
$ |
17,723,617 |
|
$ |
18,156,953 |
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|
||||||||||||||||||||||||||||||||||||||||||||
ASSET QUALITY - UNAUDITED |
|
||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) |
As of December 31, 2023 |
|
As of September 30, 2023 |
|
As of December 31, 2022 |
|
|||||||||||||||||||||||||||||||||||||||
|
Total loans |
|
Non accrual /NPLs |
|
Allowance for credit losses |
|
Total NPLs to total loans |
|
Total reserves to total NPLs |
|
Total loans |
|
Non accrual /NPLs |
|
Allowance for credit losses |
|
Total NPLs to total loans |
|
Total reserves to total NPLs |
|
Total loans |
|
Non accrual /NPLs |
|
Allowance for credit losses |
|
Total NPLs to total loans |
|
Total reserves to total NPLs |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Loan type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial & industrial, including specialty lending (1) |
$ |
6,211,105 |
|
$ |
4,436 |
|
$ |
23,503 |
|
0.07 |
% |
|
529.82 |
% |
|
$ |
6,617,508 |
|
$ |
5,767 |
|
$ |
24,986 |
|
0.09 |
% |
|
433.26 |
% |
|
$ |
6,672,830 |
|
$ |
1,761 |
|
$ |
17,582 |
|
0.03 |
% |
|
998.41 |
% |
|
Multifamily |
|
2,138,622 |
|
|
— |
|
|
16,343 |
|
— |
% |
|
— |
% |
|
|
2,130,213 |
|
|
— |
|
|
15,870 |
|
— |
% |
|
— |
% |
|
|
2,213,019 |
|
|
1,143 |
|
|
14,541 |
|
0.05 |
% |
|
1272.18 |
% |
|
Commercial real estate owner occupied |
|
797,319 |
|
|
5,869 |
|
|
9,882 |
|
0.74 |
% |
|
168.38 |
% |
|
|
794,815 |
|
|
7,442 |
|
|
10,363 |
|
0.94 |
% |
|
139.25 |
% |
|
|
885,339 |
|
|
2,768 |
|
|
6,454 |
|
0.31 |
% |
|
233.16 |
% |
|
Commercial real estate non-owner occupied |
|
1,177,650 |
|
|
— |
|
|
16,859 |
|
— |
% |
|
— |
% |
|
|
1,178,203 |
|
|
— |
|
|
15,819 |
|
— |
% |
|
— |
% |
|
|
1,290,730 |
|
|
— |
|
|
11,219 |
|
— |
% |
|
— |
% |
|
Construction |
|
166,393 |
|
|
— |
|
|
1,482 |
|
— |
% |
|
— |
% |
|
|
252,588 |
|
|
— |
|
|
3,130 |
|
— |
% |
|
— |
% |
|
|
162,009 |
|
|
— |
|
|
1,913 |
|
— |
% |
|
— |
% |
|
Total commercial loans and leases receivable |
|
10,491,089 |
|
|
10,305 |
|
|
68,069 |
|
0.10 |
% |
|
660.54 |
% |
|
|
10,973,327 |
|
|
13,209 |
|
|
70,168 |
|
0.12 |
% |
|
531.21 |
% |
|
|
11,223,927 |
|
|
5,672 |
|
|
51,709 |
|
0.05 |
% |
|
911.65 |
% |
|
Residential |
|
484,435 |
|
|
6,802 |
|
|
6,586 |
|
1.40 |
% |
|
96.82 |
% |
|
|
483,133 |
|
|
6,559 |
|
|
6,802 |
|
1.36 |
% |
|
103.70 |
% |
|
|
497,952 |
|
|
6,922 |
|
|
6,094 |
|
1.39 |
% |
|
88.04 |
% |
|
Manufactured housing |
|
38,670 |
|
|
2,331 |
|
|
4,239 |
|
6.03 |
% |
|
181.85 |
% |
|
|
40,129 |
|
|
2,582 |
|
|
4,080 |
|
6.43 |
% |
|
158.02 |
% |
|
|
45,076 |
|
|
2,410 |
|
|
4,430 |
|
5.35 |
% |
|
183.82 |
% |
|
Installment |
|
874,926 |
|
|
7,211 |
|
|
56,417 |
|
0.82 |
% |
|
782.37 |
% |
|
|
966,896 |
|
|
7,299 |
|
|
58,163 |
|
0.75 |
% |
|
796.86 |
% |
|
|
1,377,939 |
|
|
9,527 |
|
|
68,691 |
|
0.69 |
% |
|
721.01 |
% |
|
Total consumer loans receivable |
|
1,398,031 |
|
|
16,344 |
|
|
67,242 |
|
1.17 |
% |
|
411.42 |
% |
|
|
1,490,158 |
|
|
16,440 |
|
|
69,045 |
|
1.10 |
% |
|
419.98 |
% |
|
|
1,920,967 |
|
|
18,859 |
|
|
79,215 |
|
0.98 |
% |
|
420.04 |
% |
|
Loans and leases receivable (1) |
|
11,889,120 |
|
|
26,649 |
|
|
135,311 |
|
0.22 |
% |
|
507.75 |
% |
|
|
12,463,485 |
|
|
29,649 |
|
|
139,213 |
|
0.24 |
% |
|
469.54 |
% |
|
|
13,144,894 |
|
|
24,531 |
|
|
130,924 |
|
0.19 |
% |
|
533.71 |
% |
|
Loans receivable, PPP |
|
74,735 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
|
137,063 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
|
998,153 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
Loans receivable, mortgage warehouse, at fair value |
|
897,912 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
|
962,566 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
|
1,323,312 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
Total loans held for sale |
|
340,317 |
|
|
461 |
|
|
— |
|
0.14 |
% |
|
— |
% |
|
|
150,368 |
|
|
218 |
|
|
— |
|
0.14 |
% |
|
— |
% |
|
|
328,312 |
|
|
6,206 |
|
|
— |
|
1.89 |
% |
|
— |
% |
|
Total portfolio |
$ |
13,202,084 |
|
$ |
27,110 |
|
$ |
135,311 |
|
0.21 |
% |
|
499.12 |
% |
|
$ |
13,713,482 |
|
$ |
29,867 |
|
$ |
139,213 |
|
0.22 |
% |
|
466.11 |
% |
|
$ |
15,794,671 |
|
$ |
30,737 |
|
$ |
130,924 |
|
0.19 |
% |
|
425.95 |
% |
|
(1) Excluding loans receivable, PPP from total loans and leases receivable is a non-GAAP measure. Management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with |
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||||
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED |
||||||||||||||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|
Q4 |
|
Twelve Months Ended December 31, |
|||||||||||||||
|
|
2023 |
|
|
|
2023 |
|
|
2023 (1) |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Loan type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial & industrial, including specialty lending |
$ |
5,282 |
|
|
$ |
2,974 |
|
$ |
258 |
|
|
$ |
(71 |
) |
|
$ |
12,960 |
|
|
$ |
8,443 |
|
|
$ |
15,066 |
|
Multifamily |
|
127 |
|
|
|
1,999 |
|
|
1,448 |
|
|
|
— |
|
|
|
— |
|
|
|
3,574 |
|
|
|
1,653 |
|
Commercial real estate owner occupied |
|
— |
|
|
|
39 |
|
|
(34 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
5 |
|
|
|
(51 |
) |
Commercial real estate non-owner occupied |
|
(288 |
) |
|
|
— |
|
|
266 |
|
|
|
4,234 |
|
|
|
972 |
|
|
|
4,212 |
|
|
|
5,954 |
|
Construction |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(116 |
) |
|
|
(10 |
) |
|
|
(116 |
) |
|
|
(236 |
) |
Residential |
|
(1 |
) |
|
|
13 |
|
|
24 |
|
|
|
(2 |
) |
|
|
7 |
|
|
|
34 |
|
|
|
(47 |
) |
Installment |
|
12,202 |
|
|
|
12,473 |
|
|
13,602 |
|
|
|
14,606 |
|
|
|
13,237 |
|
|
|
52,883 |
|
|
|
44,029 |
|
Total net charge-offs (recoveries) from loans held for investment |
$ |
17,322 |
|
|
$ |
17,498 |
|
$ |
15,564 |
|
|
$ |
18,651 |
|
|
$ |
27,164 |
|
|
$ |
69,035 |
|
|
$ |
66,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(1) Excludes |
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 - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
||||||||||||||||||||||||
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
2023 |
|
2022 |
||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) |
USD |
Per share |
|
USD |
Per share |
|
USD |
Per share |
|
USD |
Per share |
|
USD |
Per share |
|
USD |
Per share |
|
USD |
Per share |
||||||||||||||||||||
GAAP net income to common shareholders |
$ |
58,223 |
|
$ |
1.79 |
|
$ |
82,953 |
|
$ |
2.58 |
|
$ |
44,007 |
|
$ |
1.39 |
|
$ |
50,265 |
|
$ |
1.55 |
|
$ |
25,623 |
$ |
0.77 |
|
$ |
235,448 |
$ |
7.32 |
|
$ |
218,402 |
|
$ |
6.51 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Severance expense |
|
473 |
|
|
0.01 |
|
|
— |
|
|
— |
|
|
141 |
|
|
0.00 |
|
|
637 |
|
|
0.02 |
|
|
— |
|
— |
|
|
1,251 |
|
0.04 |
|
|
1,058 |
|
|
0.03 |
|
Impairments on fixed assets and leases |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
12 |
|
|
0.00 |
|
|
86 |
|
|
0.00 |
|
|
— |
|
— |
|
|
98 |
|
0.00 |
|
|
1,051 |
|
|
0.03 |
|
Loss on sale of consumer installment loans |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
18,221 |
|
|
0.54 |
|
Loss on sale of capital call lines of credit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,914 |
|
|
0.12 |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
3,914 |
|
0.12 |
|
|
— |
|
|
— |
|
(Gains) losses on investment securities |
|
(85 |
) |
|
0.00 |
|
|
492 |
|
|
0.02 |
|
|
49 |
|
|
0.00 |
|
|
(49 |
) |
|
0.00 |
|
|
13,543 |
|
0.41 |
|
|
407 |
|
0.01 |
|
|
18,926 |
|
|
0.56 |
|
Derivative credit valuation adjustment |
|
267 |
|
|
0.01 |
|
|
(151 |
) |
|
0.00 |
|
|
(101 |
) |
|
0.00 |
|
|
204 |
|
|
0.01 |
|
|
202 |
|
0.01 |
|
|
219 |
|
0.01 |
|
|
(1,243 |
) |
|
(0.04 |
) |
Tax on surrender of bank-owned life insurance policies |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,141 |
|
|
0.13 |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
4,141 |
|
0.13 |
|
|
— |
|
|
— |
|
FDIC special assessment |
|
2,755 |
|
|
0.08 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
2,755 |
|
0.09 |
|
|
— |
|
|
— |
|
Core earnings |
$ |
61,633 |
|
$ |
1.90 |
|
$ |
83,294 |
|
$ |
2.59 |
|
$ |
52,163 |
|
$ |
1.65 |
|
$ |
51,143 |
|
$ |
1.58 |
|
$ |
39,368 |
$ |
1.19 |
|
$ |
248,233 |
$ |
7.72 |
|
$ |
256,415 |
|
$ |
7.63 |
|
Core Earnings, excluding PPP - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|||||||||||||||||||||||||||||||
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
2023 |
|
2022 |
|||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) |
USD |
Per share |
|
USD |
Per share |
|
USD |
Per share |
|
USD |
Per share |
|
USD |
Per share |
|
USD |
Per share |
|
USD |
Per share |
|||||||||||||||||||||||||||
GAAP net income to common shareholders |
$ |
58,223 |
|
$ |
1.79 |
|
|
$ |
82,953 |
|
$ |
2.58 |
|
|
$ |
44,007 |
|
$ |
1.39 |
|
|
$ |
50,265 |
|
$ |
1.55 |
|
$ |
25,623 |
|
$ |
0.77 |
|
|
$ |
235,448 |
|
$ |
7.32 |
|
|
$ |
218,402 |
|
$ |
6.51 |
|
Less: PPP net income (loss) (after tax) |
|
(5,264 |
) |
|
(0.16 |
) |
|
|
(11,168 |
) |
|
(0.35 |
) |
|
|
(2,068 |
) |
|
(0.07 |
) |
|
|
9,606 |
|
|
0.30 |
|
|
(5,956 |
) |
|
(0.18 |
) |
|
|
(8,894 |
) |
|
(0.28 |
) |
|
|
37,669 |
|
|
1.12 |
|
Net income to common shareholders, excluding PPP |
|
63,487 |
|
|
1.95 |
|
|
|
94,121 |
|
|
2.93 |
|
|
|
46,075 |
|
|
1.46 |
|
|
|
40,659 |
|
|
1.26 |
|
|
31,579 |
|
|
0.95 |
|
|
|
244,342 |
|
|
7.60 |
|
|
|
180,733 |
|
|
5.39 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Severance expense |
|
473 |
|
|
0.01 |
|
|
|
— |
|
|
— |
|
|
|
141 |
|
|
0.00 |
|
|
|
637 |
|
|
0.02 |
|
|
— |
|
|
— |
|
|
|
1,251 |
|
|
0.04 |
|
|
|
1,058 |
|
|
0.03 |
|
Impairments on fixed assets and leases |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
12 |
|
|
0.00 |
|
|
|
86 |
|
|
0.00 |
|
|
— |
|
|
— |
|
|
|
98 |
|
|
0.00 |
|
|
|
1,051 |
|
|
0.03 |
|
Loss on sale of consumer installment loans |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
18,221 |
|
|
0.54 |
|
Loss on sale of capital call lines of credit |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
3,914 |
|
|
0.12 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
3,914 |
|
|
0.12 |
|
|
|
— |
|
|
— |
|
(Gains) losses on investment securities |
|
(85 |
) |
|
0.00 |
|
|
|
492 |
|
|
0.02 |
|
|
|
49 |
|
|
0.00 |
|
|
|
(49 |
) |
|
0.00 |
|
|
13,543 |
|
|
0.41 |
|
|
|
407 |
|
|
0.01 |
|
|
|
18,926 |
|
|
0.56 |
|
Derivative credit valuation adjustment |
|
267 |
|
|
0.01 |
|
|
|
(151 |
) |
|
0.00 |
|
|
|
(101 |
) |
|
0.00 |
|
|
|
204 |
|
|
0.01 |
|
|
202 |
|
|
0.01 |
|
|
|
219 |
|
|
0.01 |
|
|
|
(1,243 |
) |
|
(0.04 |
) |
Tax on surrender of bank-owned life insurance policies |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
4,141 |
|
|
0.13 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
4,141 |
|
|
0.13 |
|
|
|
— |
|
|
— |
|
FDIC special assessment |
|
2,755 |
|
|
0.08 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
2,755 |
|
|
0.09 |
|
|
|
— |
|
|
— |
|
Core earnings, excluding PPP |
$ |
66,897 |
|
$ |
2.06 |
|
|
$ |
94,462 |
|
$ |
2.94 |
|
|
$ |
54,231 |
|
$ |
1.72 |
|
|
$ |
41,537 |
|
$ |
1.28 |
|
$ |
45,324 |
|
$ |
1.37 |
|
|
$ |
257,127 |
|
$ |
7.99 |
|
|
$ |
218,746 |
|
$ |
6.51 |
|
Core Return on Average Assets - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
||||||||||||||||
(Dollars in thousands, except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
|
2023 |
|
|
|
2022 |
|
||||||||||
GAAP net income |
$ |
62,092 |
|
|
$ |
86,756 |
|
|
$ |
47,574 |
|
|
$ |
53,721 |
|
|
$ |
28,711 |
|
|
$ |
250,143 |
|
|
$ |
228,034 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Severance expense |
|
473 |
|
|
|
— |
|
|
|
141 |
|
|
|
637 |
|
|
|
— |
|
|
|
1,251 |
|
|
|
1,058 |
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
12 |
|
|
|
86 |
|
|
|
— |
|
|
|
98 |
|
|
|
1,051 |
|
Loss on sale of consumer installment loans |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,221 |
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
3,914 |
|
|
|
— |
|
|
|
— |
|
|
|
3,914 |
|
|
|
— |
|
(Gains) losses on investment securities |
|
(85 |
) |
|
|
492 |
|
|
|
49 |
|
|
|
(49 |
) |
|
|
13,543 |
|
|
|
407 |
|
|
|
18,926 |
|
Derivative credit valuation adjustment |
|
267 |
|
|
|
(151 |
) |
|
|
(101 |
) |
|
|
204 |
|
|
|
202 |
|
|
|
219 |
|
|
|
(1,243 |
) |
Tax on surrender of bank-owned life insurance policies |
|
— |
|
|
|
— |
|
|
|
4,141 |
|
|
|
— |
|
|
|
— |
|
|
|
4,141 |
|
|
|
— |
|
FDIC special assessment |
|
2,755 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,755 |
|
|
|
— |
|
Core net income |
$ |
65,502 |
|
|
$ |
87,097 |
|
|
$ |
55,730 |
|
|
$ |
54,599 |
|
|
$ |
42,456 |
|
|
$ |
262,928 |
|
|
$ |
266,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average total assets |
$ |
21,252,273 |
|
|
$ |
21,978,010 |
|
|
$ |
21,654,735 |
|
|
$ |
21,052,920 |
|
|
$ |
20,717,362 |
|
|
$ |
21,486,383 |
|
|
$ |
20,109,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Core return on average assets |
|
1.22 |
% |
|
|
1.57 |
% |
|
|
1.03 |
% |
|
|
1.05 |
% |
|
|
0.81 |
% |
|
|
1.22 |
% |
|
|
1.32 |
% |
Core Return on Average Assets, excluding PPP - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
||||||||||||||||
(Dollars in thousands, except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
|
2023 |
|
|
|
2022 |
|
||||||||||
GAAP net income |
$ |
62,092 |
|
|
$ |
86,756 |
|
|
$ |
47,574 |
|
|
$ |
53,721 |
|
|
$ |
28,711 |
|
|
$ |
250,143 |
|
|
$ |
228,034 |
|
Less: PPP net income (loss) (after tax) |
|
(5,264 |
) |
|
|
(11,168 |
) |
|
|
(2,068 |
) |
|
|
9,606 |
|
|
|
(5,956 |
) |
|
|
(8,894 |
) |
|
|
37,669 |
|
Net income, excluding PPP |
|
67,356 |
|
|
|
97,924 |
|
|
|
49,642 |
|
|
|
44,115 |
|
|
|
34,667 |
|
|
|
259,037 |
|
|
|
190,365 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Severance expense |
|
473 |
|
|
|
— |
|
|
|
141 |
|
|
|
637 |
|
|
|
— |
|
|
|
1,251 |
|
|
|
1,058 |
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
12 |
|
|
|
86 |
|
|
|
— |
|
|
|
98 |
|
|
|
1,051 |
|
Loss on sale of consumer installment loans |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,221 |
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
3,914 |
|
|
|
— |
|
|
|
— |
|
|
|
3,914 |
|
|
|
— |
|
(Gains) losses on investment securities |
|
(85 |
) |
|
|
492 |
|
|
|
49 |
|
|
|
(49 |
) |
|
|
13,543 |
|
|
|
407 |
|
|
|
18,926 |
|
Derivative credit valuation adjustment |
|
267 |
|
|
|
(151 |
) |
|
|
(101 |
) |
|
|
204 |
|
|
|
202 |
|
|
|
219 |
|
|
|
(1,243 |
) |
Tax on surrender of bank-owned life insurance policies |
|
— |
|
|
|
— |
|
|
|
4,141 |
|
|
|
— |
|
|
|
— |
|
|
|
4,141 |
|
|
|
— |
|
FDIC special assessment |
|
2,755 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,755 |
|
|
|
— |
|
Core net income, excluding PPP |
$ |
70,766 |
|
|
$ |
98,265 |
|
|
$ |
57,798 |
|
|
$ |
44,993 |
|
|
$ |
48,412 |
|
|
$ |
271,822 |
|
|
$ |
228,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average total assets |
$ |
21,252,273 |
|
|
$ |
21,978,010 |
|
|
$ |
21,654,735 |
|
|
$ |
21,052,920 |
|
|
$ |
20,717,362 |
|
|
$ |
21,486,383 |
|
|
$ |
20,109,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Core return on average assets, excluding PPP |
|
1.32 |
% |
|
|
1.77 |
% |
|
|
1.07 |
% |
|
|
0.87 |
% |
|
|
0.93 |
% |
|
|
1.27 |
% |
|
|
1.14 |
% |
Adjusted Net Income and Adjusted ROAA - Pre-Tax Pre-Provision - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
||||||||||||||||
(Dollars in thousands, except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
|
2023 |
|
|
|
2022 |
|
||||||||||
GAAP net income |
$ |
62,092 |
|
|
$ |
86,756 |
|
|
$ |
47,574 |
|
|
$ |
53,721 |
|
|
$ |
28,711 |
|
|
$ |
250,143 |
|
|
$ |
228,034 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income tax expense |
|
21,796 |
|
|
|
23,470 |
|
|
|
20,768 |
|
|
|
14,563 |
|
|
|
7,136 |
|
|
|
80,597 |
|
|
|
63,263 |
|
Provision (benefit) for credit losses |
|
13,523 |
|
|
|
17,856 |
|
|
|
23,629 |
|
|
|
19,603 |
|
|
|
28,216 |
|
|
|
74,611 |
|
|
|
60,066 |
|
Provision (benefit) for credit losses on unfunded commitments |
|
(136 |
) |
|
|
48 |
|
|
|
(304 |
) |
|
|
280 |
|
|
|
153 |
|
|
|
(112 |
) |
|
|
906 |
|
Severance expense |
|
639 |
|
|
|
— |
|
|
|
182 |
|
|
|
809 |
|
|
|
— |
|
|
|
1,630 |
|
|
|
1,363 |
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
109 |
|
|
|
— |
|
|
|
124 |
|
|
|
1,362 |
|
Loss on sale of consumer installment loans |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23,465 |
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
5,037 |
|
|
|
— |
|
|
|
— |
|
|
|
5,037 |
|
|
|
— |
|
(Gains) losses on investment securities |
|
(114 |
) |
|
|
626 |
|
|
|
62 |
|
|
|
(62 |
) |
|
|
16,909 |
|
|
|
512 |
|
|
|
23,874 |
|
Derivative credit valuation adjustment |
|
361 |
|
|
|
(192 |
) |
|
|
(130 |
) |
|
|
259 |
|
|
|
252 |
|
|
|
298 |
|
|
|
(1,621 |
) |
FDIC special assessment |
|
3,723 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,723 |
|
|
|
— |
|
Adjusted net income - pre-tax pre-provision |
$ |
101,884 |
|
|
$ |
128,564 |
|
|
$ |
96,833 |
|
|
$ |
89,282 |
|
|
$ |
81,377 |
|
|
$ |
416,563 |
|
|
$ |
400,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average total assets |
$ |
21,252,273 |
|
|
$ |
21,978,010 |
|
|
$ |
21,654,735 |
|
|
$ |
21,052,920 |
|
|
$ |
20,717,362 |
|
|
$ |
21,486,383 |
|
|
$ |
20,109,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjusted ROAA - pre-tax pre-provision |
|
1.90 |
% |
|
|
2.32 |
% |
|
|
1.79 |
% |
|
|
1.72 |
% |
|
|
1.56 |
% |
|
|
1.94 |
% |
|
1.99 |
% |
Adjusted Net Income and Adjusted ROAA - Pre-Tax Pre-Provision, excluding PPP - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
||||||||||||||||
(Dollars in thousands, except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
|
2023 |
|
|
|
2022 |
|
||||||||||
GAAP net income |
$ |
62,092 |
|
|
$ |
86,756 |
|
|
$ |
47,574 |
|
|
$ |
53,721 |
|
|
$ |
28,711 |
|
|
$ |
250,143 |
|
|
$ |
228,034 |
|
Less: PPP net income (loss) (after tax) |
|
(5,264 |
) |
|
|
(11,168 |
) |
|
|
(2,068 |
) |
|
|
9,606 |
|
|
|
(5,956 |
) |
|
|
(8,894 |
) |
|
|
37,669 |
|
Net income, excluding PPP |
|
67,356 |
|
|
|
97,924 |
|
|
|
49,642 |
|
|
|
44,115 |
|
|
|
34,667 |
|
|
|
259,037 |
|
|
|
190,365 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income tax expense |
|
21,796 |
|
|
|
23,470 |
|
|
|
20,768 |
|
|
|
14,563 |
|
|
|
7,136 |
|
|
|
80,597 |
|
|
|
63,263 |
|
Provision (benefit) for credit losses |
|
13,523 |
|
|
|
17,856 |
|
|
|
23,629 |
|
|
|
19,603 |
|
|
|
28,216 |
|
|
|
74,611 |
|
|
|
60,066 |
|
Provision (benefit) for credit losses on unfunded commitments |
|
(136 |
) |
|
|
48 |
|
|
|
(304 |
) |
|
|
280 |
|
|
|
153 |
|
|
|
(112 |
) |
|
|
906 |
|
Severance expense |
|
639 |
|
|
|
— |
|
|
|
182 |
|
|
|
809 |
|
|
|
— |
|
|
|
1,630 |
|
|
|
1,363 |
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
109 |
|
|
|
— |
|
|
|
124 |
|
|
|
1,362 |
|
Loss on sale of consumer installment loans |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23,465 |
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
5,037 |
|
|
|
— |
|
|
|
— |
|
|
|
5,037 |
|
|
|
— |
|
(Gains) losses on investment securities |
|
(114 |
) |
|
|
626 |
|
|
|
62 |
|
|
|
(62 |
) |
|
|
16,909 |
|
|
|
512 |
|
|
|
23,874 |
|
Derivative credit valuation adjustment |
|
361 |
|
|
|
(192 |
) |
|
|
(130 |
) |
|
|
259 |
|
|
|
252 |
|
|
|
298 |
|
|
|
(1,621 |
) |
FDIC special assessment |
|
3,723 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,723 |
|
|
|
— |
|
Adjusted net income - pre-tax pre-provision, excluding PPP |
$ |
107,148 |
|
|
$ |
139,732 |
|
|
$ |
98,901 |
|
|
$ |
79,676 |
|
|
$ |
87,333 |
|
|
$ |
425,457 |
|
|
$ |
363,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average total assets |
$ |
21,252,273 |
|
|
$ |
21,978,010 |
|
|
$ |
21,654,735 |
|
|
$ |
21,052,920 |
|
|
$ |
20,717,362 |
|
|
$ |
21,486,383 |
|
|
$ |
20,109,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjusted ROAA - pre-tax pre-provision, excluding PPP |
|
2.00 |
% |
|
|
2.52 |
% |
|
|
1.83 |
% |
|
|
1.53 |
% |
|
|
1.67 |
% |
|
|
1.98 |
% |
|
|
1.81 |
% |
Core Return on Average Common Equity - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
||||||||||||||||
(Dollars in thousands, except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
|
2023 |
|
|
|
2022 |
|
||||||||||
GAAP net income to common shareholders |
$ |
58,223 |
|
|
$ |
82,953 |
|
|
$ |
44,007 |
|
|
$ |
50,265 |
|
|
$ |
25,623 |
|
|
$ |
235,448 |
|
|
$ |
218,402 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Severance expense |
|
473 |
|
|
|
— |
|
|
|
141 |
|
|
|
637 |
|
|
|
— |
|
|
|
1,251 |
|
|
|
1,058 |
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
12 |
|
|
|
86 |
|
|
|
— |
|
|
|
98 |
|
|
|
1,051 |
|
Loss on sale of consumer installment loans |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,221 |
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
3,914 |
|
|
|
— |
|
|
|
— |
|
|
|
3,914 |
|
|
|
— |
|
(Gains) losses on investment securities |
|
(85 |
) |
|
|
492 |
|
|
|
49 |
|
|
|
(49 |
) |
|
|
13,543 |
|
|
|
407 |
|
|
|
18,926 |
|
Derivative credit valuation adjustment |
|
267 |
|
|
|
(151 |
) |
|
|
(101 |
) |
|
|
204 |
|
|
|
202 |
|
|
|
219 |
|
|
|
(1,243 |
) |
Tax on surrender of bank-owned life insurance policies |
|
— |
|
|
|
— |
|
|
|
4,141 |
|
|
|
— |
|
|
|
— |
|
|
|
4,141 |
|
|
|
— |
|
FDIC special assessment |
|
2,755 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,755 |
|
|
|
— |
|
Core earnings |
$ |
61,633 |
|
|
$ |
83,294 |
|
|
$ |
52,163 |
|
|
$ |
51,143 |
|
|
$ |
39,368 |
|
|
$ |
248,233 |
|
|
$ |
256,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average total common shareholders’ equity |
$ |
1,449,728 |
|
|
$ |
1,373,244 |
|
|
$ |
1,335,408 |
|
|
$ |
1,273,780 |
|
|
$ |
1,263,190 |
|
|
$ |
1,358,564 |
|
|
$ |
1,254,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Core return on average common equity |
|
16.87 |
% |
|
|
24.06 |
% |
|
|
15.67 |
% |
|
|
16.28 |
% |
|
|
12.36 |
% |
|
|
18.27 |
% |
|
|
20.43 |
% |
Adjusted ROCE - Pre-Tax Pre-Provision - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
||||||||||||||||
(Dollars in thousands, except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
|
2023 |
|
|
|
2022 |
|
||||||||||
GAAP net income to common shareholders |
$ |
58,223 |
|
|
$ |
82,953 |
|
|
$ |
44,007 |
|
|
$ |
50,265 |
|
|
$ |
25,623 |
|
|
$ |
235,448 |
|
|
$ |
218,402 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income tax expense |
|
21,796 |
|
|
|
23,470 |
|
|
|
20,768 |
|
|
|
14,563 |
|
|
|
7,136 |
|
|
|
80,597 |
|
|
|
63,263 |
|
Provision (benefit) for credit losses |
|
13,523 |
|
|
|
17,856 |
|
|
|
23,629 |
|
|
|
19,603 |
|
|
|
28,216 |
|
|
|
74,611 |
|
|
|
60,066 |
|
Provision (benefit) for credit losses on unfunded commitments |
|
(136 |
) |
|
|
48 |
|
|
|
(304 |
) |
|
|
280 |
|
|
|
153 |
|
|
|
(112 |
) |
|
|
906 |
|
Severance expense |
|
639 |
|
|
|
— |
|
|
|
182 |
|
|
|
809 |
|
|
|
— |
|
|
|
1,630 |
|
|
|
1,363 |
|
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
109 |
|
|
|
— |
|
|
|
124 |
|
|
|
1,362 |
|
Loss on sale of consumer installment loans |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23,465 |
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
5,037 |
|
|
|
— |
|
|
|
— |
|
|
|
5,037 |
|
|
|
— |
|
(Gains) losses on investment securities |
|
(114 |
) |
|
|
626 |
|
|
|
62 |
|
|
|
(62 |
) |
|
|
16,909 |
|
|
|
512 |
|
|
|
23,874 |
|
Derivative credit valuation adjustment |
|
361 |
|
|
|
(192 |
) |
|
|
(130 |
) |
|
|
259 |
|
|
|
252 |
|
|
|
298 |
|
|
|
(1,621 |
) |
FDIC special assessment |
|
3,723 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,723 |
|
|
|
— |
|
Pre-tax pre-provision adjusted net income available to common shareholders |
$ |
98,015 |
|
|
$ |
124,761 |
|
|
$ |
93,266 |
|
|
$ |
85,826 |
|
|
$ |
78,289 |
|
|
$ |
401,868 |
|
|
$ |
391,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average total common shareholders’ equity |
$ |
1,449,728 |
|
|
$ |
1,373,244 |
|
|
$ |
1,335,408 |
|
|
$ |
1,273,780 |
|
|
$ |
1,263,190 |
|
|
$ |
1,358,564 |
|
|
$ |
1,254,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjusted ROCE - pre-tax pre-provision |
|
26.82 |
% |
|
|
36.04 |
% |
|
|
28.01 |
% |
|
|
27.33 |
% |
|
|
24.59 |
% |
|
|
29.58 |
% |
|
|
31.16 |
% |
Net Interest Margin, Tax Equivalent, excluding PPP - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
||||||||||||||||
(Dollars in thousands, except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
|
2023 |
|
|
|
2022 |
|
||||||||||
GAAP net interest income |
$ |
172,506 |
|
|
$ |
199,773 |
|
|
$ |
165,271 |
|
|
$ |
149,899 |
|
|
$ |
135,137 |
|
|
$ |
687,449 |
|
|
$ |
623,720 |
|
PPP net interest (income) expense |
|
596 |
|
|
|
1,381 |
|
|
|
765 |
|
|
|
(14,106 |
) |
|
|
2,791 |
|
|
|
(11,364 |
) |
|
|
(60,402 |
) |
Tax-equivalent adjustment |
|
398 |
|
|
|
405 |
|
|
|
390 |
|
|
|
375 |
|
|
|
342 |
|
|
|
1,568 |
|
|
|
1,185 |
|
Net interest income, tax equivalent, excluding PPP |
$ |
173,500 |
|
|
$ |
201,559 |
|
|
$ |
166,426 |
|
|
$ |
136,168 |
|
|
$ |
138,270 |
|
|
$ |
677,653 |
|
|
$ |
564,503 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
GAAP average total interest earning assets |
$ |
20,802,304 |
|
|
$ |
21,485,319 |
|
|
$ |
21,073,680 |
|
|
$ |
20,514,677 |
|
|
$ |
20,211,028 |
|
|
$ |
20,971,198 |
|
|
$ |
19,588,374 |
|
Average PPP loans |
|
(115,851 |
) |
|
|
(166,164 |
) |
|
|
(207,127 |
) |
|
|
(889,235 |
) |
|
|
(1,065,919 |
) |
|
|
(341,987 |
) |
|
|
(1,724,659 |
) |
Adjusted average total interest earning assets, excluding PPP |
$ |
20,686,453 |
|
|
$ |
21,319,155 |
|
|
$ |
20,866,553 |
|
|
$ |
19,625,442 |
|
|
$ |
19,145,109 |
|
|
$ |
20,629,211 |
|
|
$ |
17,863,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net interest margin, tax equivalent, excluding PPP |
|
3.33 |
% |
|
|
3.75 |
% |
|
|
3.20 |
% |
|
|
2.80 |
% |
|
|
2.87 |
% |
|
|
3.28 |
% |
|
|
3.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Yield, excluding PPP |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
||||||||||||||||
(Dollars in thousands except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
|
2023 |
|
|
|
2022 |
|
||||||||||
Interest income on loans and leases |
$ |
248,160 |
|
|
$ |
275,771 |
|
|
$ |
252,894 |
|
|
$ |
255,913 |
|
|
$ |
218,740 |
|
|
$ |
1,032,738 |
|
|
$ |
745,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
PPP interest income |
|
(839 |
) |
|
|
(604 |
) |
|
|
(1,633 |
) |
|
|
(23,551 |
) |
|
|
(7,249 |
) |
|
|
(26,627 |
) |
|
|
(79,381 |
) |
Interest income on core loans (Loans and leases, excluding PPP) |
$ |
247,321 |
|
|
$ |
275,167 |
|
|
$ |
251,261 |
|
|
$ |
232,362 |
|
|
$ |
211,491 |
|
|
$ |
1,006,111 |
|
|
$ |
665,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average total loans and leases |
$ |
13,486,453 |
|
|
$ |
13,899,034 |
|
|
$ |
14,842,432 |
|
|
$ |
15,477,973 |
|
|
$ |
15,388,003 |
|
|
$ |
14,419,572 |
|
|
$ |
14,911,165 |
|
Average PPP loans |
|
(115,851 |
) |
|
|
(166,164 |
) |
|
|
(207,127 |
) |
|
|
(889,235 |
) |
|
|
(1,065,919 |
) |
|
|
(341,987 |
) |
|
|
(1,724,659 |
) |
Adjusted average total loans and leases |
$ |
13,370,602 |
|
|
$ |
13,732,870 |
|
|
$ |
14,635,305 |
|
|
$ |
14,588,738 |
|
|
$ |
14,322,084 |
|
|
$ |
14,077,585 |
|
|
$ |
13,186,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loan yield, excluding PPP |
|
7.34 |
% |
|
|
7.95 |
% |
|
|
6.89 |
% |
|
|
6.46 |
% |
|
|
5.86 |
% |
|
|
7.15 |
% |
|
|
5.05 |
% |
Core Efficiency Ratio - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
||||||||||||||||
(Dollars in thousands, except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
|
2023 |
|
|
|
2022 |
|
||||||||||
GAAP net interest income |
$ |
172,506 |
|
|
$ |
199,773 |
|
|
$ |
165,271 |
|
|
$ |
149,899 |
|
|
$ |
135,137 |
|
|
$ |
687,449 |
|
|
$ |
623,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
GAAP non-interest income |
$ |
18,672 |
|
|
$ |
17,775 |
|
|
$ |
15,997 |
|
|
$ |
18,121 |
|
|
$ |
7,345 |
|
|
$ |
70,565 |
|
|
$ |
32,272 |
|
Loss on sale of consumer installment loans |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23,465 |
|
Loss on sale of capital call lines of credit |
|
— |
|
|
|
— |
|
|
|
5,037 |
|
|
|
— |
|
|
|
— |
|
|
|
5,037 |
|
|
|
— |
|
(Gains) losses on investment securities |
|
(114 |
) |
|
|
626 |
|
|
|
62 |
|
|
|
(62 |
) |
|
|
16,909 |
|
|
|
512 |
|
|
|
23,874 |
|
Derivative credit valuation adjustment |
|
361 |
|
|
|
(192 |
) |
|
|
(130 |
) |
|
|
259 |
|
|
|
252 |
|
|
|
298 |
|
|
|
(1,621 |
) |
Core non-interest income |
|
18,919 |
|
|
|
18,209 |
|
|
|
20,966 |
|
|
|
18,318 |
|
|
|
24,506 |
|
|
|
76,412 |
|
|
|
77,990 |
|
Core revenue |
$ |
191,425 |
|
|
$ |
217,982 |
|
|
$ |
186,237 |
|
|
$ |
168,217 |
|
|
$ |
159,643 |
|
|
$ |
763,861 |
|
|
$ |
701,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
GAAP non-interest expense |
$ |
93,767 |
|
|
$ |
89,466 |
|
|
$ |
89,297 |
|
|
$ |
80,133 |
|
|
$ |
78,419 |
|
|
$ |
352,663 |
|
|
$ |
304,629 |
|
Severance expense |
|
(639 |
) |
|
|
— |
|
|
|
(182 |
) |
|
|
(809 |
) |
|
|
— |
|
|
|
(1,630 |
) |
|
|
(1,363 |
) |
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
(15 |
) |
|
|
(109 |
) |
|
|
— |
|
|
|
(124 |
) |
|
|
(1,362 |
) |
FDIC special assessment |
|
(3,723 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,723 |
) |
|
|
— |
|
Core non-interest expense |
$ |
89,405 |
|
|
$ |
89,466 |
|
|
$ |
89,100 |
|
|
$ |
79,215 |
|
|
$ |
78,419 |
|
|
$ |
347,186 |
|
|
$ |
301,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Core efficiency ratio (1) |
|
46.70 |
% |
|
|
41.04 |
% |
|
|
47.84 |
% |
|
|
47.09 |
% |
|
|
49.12 |
% |
|
|
45.45 |
% |
|
|
43.02 |
% |
(1) Core efficiency ratio calculated as core non-interest expense divided by core revenue. |
Core non-interest expense to average total assets - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
||||||||||||||||
(Dollars in thousands, except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
|
2023 |
|
|
|
2022 |
|
||||||||||
GAAP non-interest expense |
$ |
93,767 |
|
|
$ |
89,466 |
|
|
$ |
89,297 |
|
|
$ |
80,133 |
|
|
$ |
78,419 |
|
|
$ |
352,663 |
|
|
$ |
304,629 |
|
Severance expense |
|
(639 |
) |
|
|
— |
|
|
|
(182 |
) |
|
|
(809 |
) |
|
|
— |
|
|
|
(1,630 |
) |
|
|
(1,363 |
) |
Impairments on fixed assets and leases |
|
— |
|
|
|
— |
|
|
|
(15 |
) |
|
|
(109 |
) |
|
|
— |
|
|
|
(124 |
) |
|
|
(1,362 |
) |
FDIC special assessment |
|
(3,723 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,723 |
) |
|
|
— |
|
Core non-interest expense |
$ |
89,405 |
|
|
$ |
89,466 |
|
|
$ |
89,100 |
|
|
$ |
79,215 |
|
|
$ |
78,419 |
|
|
$ |
347,186 |
|
|
$ |
301,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average total assets |
$ |
21,252,273 |
|
|
$ |
21,978,010 |
|
|
$ |
21,654,735 |
|
|
$ |
21,052,920 |
|
|
$ |
20,717,362 |
|
|
$ |
21,486,383 |
|
|
$ |
20,109,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Core non-interest expense to average total assets |
|
1.67 |
% |
|
|
1.62 |
% |
|
|
1.65 |
% |
|
|
1.53 |
% |
|
|
1.50 |
% |
|
|
1.62 |
% |
|
|
1.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity to Tangible Assets - Customers Bancorp |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
||||||||||
GAAP total shareholders’ equity |
$ |
1,638,394 |
|
|
$ |
1,561,607 |
|
|
$ |
1,456,652 |
|
|
$ |
1,421,020 |
|
|
$ |
1,402,961 |
|
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 |
$ |
1,496,971 |
|
|
$ |
1,420,184 |
|
|
$ |
1,315,229 |
|
|
$ |
1,279,597 |
|
|
$ |
1,261,538 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP total assets |
$ |
21,316,265 |
|
|
$ |
21,857,152 |
|
|
$ |
22,028,565 |
|
|
$ |
21,751,614 |
|
|
$ |
20,896,112 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill and other intangibles |
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
Tangible assets |
$ |
21,312,636 |
|
|
$ |
21,853,523 |
|
|
$ |
22,024,936 |
|
|
$ |
21,747,985 |
|
|
$ |
20,892,483 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible common equity to tangible assets |
|
7.0 |
% |
|
|
6.5 |
% |
|
|
6.0 |
% |
|
|
5.9 |
% |
|
|
6.0 |
% |
Tangible Common Equity to Tangible Assets, excluding PPP - Customers Bancorp |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
||||||||||
GAAP total shareholders’ equity |
$ |
1,638,394 |
|
|
$ |
1,561,607 |
|
|
$ |
1,456,652 |
|
|
$ |
1,421,020 |
|
|
$ |
1,402,961 |
|
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 |
$ |
1,496,971 |
|
|
$ |
1,420,184 |
|
|
$ |
1,315,229 |
|
|
$ |
1,279,597 |
|
|
$ |
1,261,538 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP total assets |
$ |
21,316,265 |
|
|
$ |
21,857,152 |
|
|
$ |
22,028,565 |
|
|
$ |
21,751,614 |
|
|
$ |
20,896,112 |
|
Loans receivable, PPP |
|
(74,735 |
) |
|
|
(137,063 |
) |
|
|
(188,763 |
) |
|
|
(246,258 |
) |
|
|
(998,153 |
) |
Total assets, excluding PPP |
$ |
21,241,530 |
|
|
$ |
21,720,089 |
|
|
$ |
21,839,802 |
|
|
$ |
21,505,356 |
|
|
$ |
19,897,959 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill and other intangibles |
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
Tangible assets, excluding PPP |
$ |
21,237,901 |
|
|
$ |
21,716,460 |
|
|
$ |
21,836,173 |
|
|
$ |
21,501,727 |
|
|
$ |
19,894,330 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible common equity to tangible assets, excluding PPP |
|
7.0 |
% |
|
|
6.5 |
% |
|
|
6.0 |
% |
|
|
6.0 |
% |
|
|
6.3 |
% |
Tangible Book Value per Common Share - Customers Bancorp |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except share and per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
||||||||||
GAAP total shareholders’ equity |
$ |
1,638,394 |
|
|
$ |
1,561,607 |
|
|
$ |
1,456,652 |
|
|
$ |
1,421,020 |
|
|
$ |
1,402,961 |
|
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 |
$ |
1,496,971 |
|
|
$ |
1,420,184 |
|
|
$ |
1,315,229 |
|
|
$ |
1,279,597 |
|
|
$ |
1,261,538 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common shares outstanding |
|
31,440,906 |
|
|
|
31,311,254 |
|
|
|
31,282,318 |
|
|
|
31,239,750 |
|
|
|
32,373,697 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible book value per common share |
$ |
47.61 |
|
|
$ |
45.36 |
|
|
$ |
42.04 |
|
|
$ |
40.96 |
|
|
$ |
38.97 |
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value per Common Share - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Dollars in thousands, except share and per share data) |
Q4 2023 |
|
Q4 2022 |
|
Q4 2021 |
|
Q4 2020 |
|
Q4 2019 |
|
Q4 2018 |
||||||||||||
GAAP total shareholders’ equity |
$ |
1,638,394 |
|
|
$ |
1,402,961 |
|
|
$ |
1,366,217 |
|
|
$ |
1,117,086 |
|
|
$ |
1,052,795 |
|
|
$ |
956,816 |
|
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Preferred stock |
|
(137,794 |
) |
|
|
(137,794 |
) |
|
|
(137,794 |
) |
|
|
(217,471 |
) |
|
|
(217,471 |
) |
|
|
(217,471 |
) |
Goodwill and other intangibles |
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,736 |
) |
|
|
(14,298 |
) |
|
|
(15,195 |
) |
|
|
(16,499 |
) |
Tangible common equity |
$ |
1,496,971 |
|
|
$ |
1,261,538 |
|
|
$ |
1,224,687 |
|
|
$ |
885,317 |
|
|
$ |
820,129 |
|
|
$ |
722,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common shares outstanding |
|
31,440,906 |
|
|
|
32,373,697 |
|
|
|
32,913,267 |
|
|
|
31,705,088 |
|
|
|
31,336,791 |
|
|
|
31,003,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tangible book value per common share |
$ |
47.61 |
|
|
$ |
38.97 |
|
|
$ |
37.21 |
|
|
$ |
27.92 |
|
|
$ |
26.17 |
|
|
$ |
23.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Loans (Total Loans and Leases, excluding PPP) |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
||||||||||
Total loans and leases |
$ |
13,202,084 |
|
|
$ |
13,713,482 |
|
|
$ |
13,910,907 |
|
|
$ |
15,063,034 |
|
|
$ |
15,794,671 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans receivable, PPP |
|
(74,735 |
) |
|
|
(137,063 |
) |
|
|
(188,763 |
) |
|
|
(246,258 |
) |
|
|
(998,153 |
) |
Core Loans (Total loans and leases, excluding PPP) |
$ |
13,127,349 |
|
|
$ |
13,576,419 |
|
|
$ |
13,722,144 |
|
|
$ |
14,816,776 |
|
|
$ |
14,796,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Core Loans Held for Investment (Total Loans and Leases Held for Investment, excluding PPP) |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
||||||||||
Total loans and leases, held for investment |
$ |
12,861,767 |
|
|
$ |
13,563,114 |
|
|
$ |
13,832,799 |
|
|
$ |
14,638,977 |
|
|
$ |
15,466,359 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans receivable, PPP |
|
(74,735 |
) |
|
|
(137,063 |
) |
|
|
(188,763 |
) |
|
|
(246,258 |
) |
|
|
(998,153 |
) |
Core Loans Held for Investment (Total loans and leases held for investment, excluding PPP) |
$ |
12,787,032 |
|
|
$ |
13,426,051 |
|
|
$ |
13,644,036 |
|
|
$ |
14,392,719 |
|
|
$ |
14,468,206 |
|
|
|
|
|
|
|
|
|
|
|
Total Assets, excluding PPP |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
||||||||||
Total assets |
$ |
21,316,265 |
|
|
$ |
21,857,152 |
|
|
$ |
22,028,565 |
|
|
$ |
21,751,614 |
|
|
$ |
20,896,112 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans receivable, PPP |
|
(74,735 |
) |
|
|
(137,063 |
) |
|
|
(188,763 |
) |
|
|
(246,258 |
) |
|
|
(998,153 |
) |
Total assets, excluding PPP |
$ |
21,241,530 |
|
|
$ |
21,720,089 |
|
|
$ |
21,839,802 |
|
|
$ |
21,505,356 |
|
|
$ |
19,897,959 |
|
|
|
|
|
|
|
|
|
|
|
Coverage of credit loss reserves for loans and leases held for investment, excluding PPP |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q4 2023 |
|
Q3 2023 |
|
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
||||||||||
Loans and leases receivable |
$ |
11,963,855 |
|
|
$ |
12,600,548 |
|
|
$ |
12,826,531 |
|
|
$ |
13,391,610 |
|
|
$ |
14,143,047 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans receivable, PPP |
|
(74,735 |
) |
|
|
(137,063 |
) |
|
|
(188,763 |
) |
|
|
(246,258 |
) |
|
|
(998,153 |
) |
Loans and leases held for investment, excluding PPP |
$ |
11,889,120 |
|
|
$ |
12,463,485 |
|
|
$ |
12,637,768 |
|
|
$ |
13,145,352 |
|
|
$ |
13,144,894 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses on loans and leases |
$ |
135,311 |
|
|
$ |
139,213 |
|
|
$ |
139,656 |
|
|
$ |
130,281 |
|
|
$ |
130,924 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Coverage of credit loss reserves for loans and leases held for investment, excluding PPP |
|
1.14 |
% |
|
|
1.12 |
% |
|
|
1.11 |
% |
|
|
0.99 |
% |
|
|
1.00 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240124366139/en/
David W. Patti, Communications Director 610-451-9452
Source: Customers Bancorp, Inc.
FAQ
What is the net income available to common shareholders for Q4 2023?
What was the CET 1 capital ratio at December 31, 2023?
What was the TCE / TA ratio at December 31, 2023?
What percentage of total deposits were insured at December 31, 2023?
What was the amount of non-performing assets at December 31, 2023?