Customers Bancorp Reports Results for Second Quarter 2023
- Q2 2023 net income available to common shareholders was $44.0 million, or $1.39 per diluted share.
- CET 1 capital ratio was 10.3% at June 30, 2023, showing progress towards the year-end goal of 11.0% - 11.5%.
- Q2 2023 net interest margin (NIM) increased to 3.15%.
- Total deposits grew by $226.8 million in Q2 2023, with a significant increase in non-interest bearing deposits of $1.0 billion, or 29%.
- Non-performing assets decreased by $3.9 million, or 12%, from the previous quarter.
- Book value per share and tangible book value per share both grew by $1.08, or 2.6%.
- None.
Second Quarter 2023 Highlights
-
Q2 2023 net income available to common shareholders was
, or$44.0 million per diluted share; ROAA was$1.39 0.88% and ROCE was13.22% . -
Q2 2023 core earnings* were
, or$52.2 million per diluted share; Core ROAA* was$1.65 1.03% and Core ROCE* was15.67% . -
CET 1 capital ratio of
10.3% 1 at June 30, 2023, compared to9.6% at March 31, 2023. Significant progress toward stated goal of11.0% -11.5% by year-end 2023. -
Q2 2023 net interest margin, tax equivalent (NIM) was
3.15% , an increase of 19 basis points over Q1 2023 NIM of2.96% . Q1 2023 NIM (excluding PPP)* was2.80% -
Significant positive deposit mix shift in Q2 2023 as total deposits grew by
, with an increase in non-interest bearing deposits of$226.8 million , or$1.0 billion 29% , over Q1 2023. The average cost of deposits decreased 21 basis points in Q2 2023 while the June 30, 2023 spot cost of deposits declined one basis point from March 31, 2023 despite an increase in market interest rates in Q2 2023. -
Total estimated insured deposits were
77% 2 of total deposits at June 30, 2023, with immediately available liquidity covering uninsured deposits by approximately222% . -
Q2 2023 adjusted pre-tax pre-provision net income* was
; adjusted pre-tax pre-provision ROAA* was$96.8 million 1.79% ; and adjusted pre-tax pre-provision ROCE* was28.01% . -
Q2 2023 loans declined
or$1.2 billion 7.6% over Q1 2023, with average loan yields up 13 basis points in Q2 2023, principally due to non-strategic loan sales. -
Q2 2023 provision for credit losses on loans and leases of
was largely driven by the recognition of weaker macroeconomic forecasts.$22.4 million -
Non-performing assets were
, or$28.4 million 0.13% of total assets, at June 30, 2023, down , or$3.9 million 12% , from March 31, 2023. Allowance for credit losses on loans and leases equaled494% of non-performing loans at June 30, 2023, compared to406% at March 31, 2023. -
Q2 2023 book value per share and tangible book value per share* both grew by
, or$1.08 2.6% , with increased AOCI losses of over the same time period.$11.9 million
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* Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
||||
1 Regulatory capital ratios as of June 30, 2023 are estimates. |
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2 Uninsured deposits (estimate) of |
CEO Commentary
“We are very pleased with our second quarter results as we executed seamlessly on our strategic priorities and delivered one of our strongest quarters to date,” said Customers Bancorp Chairman and CEO Jay Sidhu. “While the industry continues to face significant headwinds from rising funding costs, negative deposit mix shifts and net interest margin compression, we successfully grew total deposits by
“Our Q2 2023 GAAP earnings were
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* Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
||||
1 Regulatory capital ratios as of June 30, 2023 are estimates. |
||||
2 Uninsured deposits (estimate) of |
||||
Financial Highlights
(Dollars in thousands, except per share data) |
|
At or Three Months Ended |
|
Increase (Decrease) |
|||||||||||
|
June 30, 2023 |
|
March 31, 2023 |
|
|||||||||||
Profitability Metrics: |
|
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|
|||||||
Net income available for common shareholders |
|
$ |
44,007 |
|
|
$ |
50,265 |
|
|
$ |
(6,258 |
) |
|
(12.5 |
)% |
Diluted earnings per share |
|
$ |
1.39 |
|
|
$ |
1.55 |
|
|
$ |
(0.16 |
) |
|
(10.3 |
)% |
Core earnings* |
|
$ |
52,163 |
|
|
$ |
51,143 |
|
|
$ |
1,020 |
|
|
2.0 |
% |
Core earnings per share* |
|
$ |
1.65 |
|
|
$ |
1.58 |
|
|
$ |
0.07 |
|
|
4.4 |
% |
Core earnings, excluding PPP* |
|
$ |
54,231 |
|
|
$ |
41,537 |
|
|
$ |
12,694 |
|
|
30.6 |
% |
Core earnings per share, excluding PPP* |
|
$ |
1.72 |
|
|
$ |
1.28 |
|
|
$ |
0.44 |
|
|
34.4 |
% |
Return on average assets ("ROAA") |
|
|
0.88 |
% |
|
|
1.03 |
% |
|
|
(0.15 |
) |
|
|
|
Core ROAA* |
|
|
1.03 |
% |
|
|
1.05 |
% |
|
|
(0.02 |
) |
|
|
|
Core ROAA, excluding PPP* |
|
|
1.07 |
% |
|
|
0.87 |
% |
|
|
0.20 |
|
|
|
|
Return on average common equity ("ROCE") |
|
|
13.22 |
% |
|
|
16.00 |
% |
|
|
(2.78 |
) |
|
|
|
Core ROCE* |
|
|
15.67 |
% |
|
|
16.28 |
% |
|
|
(0.61 |
) |
|
|
|
Adjusted pre-tax pre-provision net income* |
|
$ |
96,833 |
|
|
$ |
89,282 |
|
|
$ |
7,551 |
|
|
8.5 |
% |
Adjusted pre-tax pre-provision net income ROAA, excluding PPP* |
|
|
1.83 |
% |
|
|
1.53 |
% |
|
|
0.30 |
|
|
|
|
Net interest margin, tax equivalent |
|
|
3.15 |
% |
|
|
2.96 |
% |
|
|
0.19 |
|
|
|
|
Net interest margin, tax equivalent, excluding PPP* |
|
|
3.20 |
% |
|
|
2.80 |
% |
|
|
0.40 |
|
|
|
|
Loan yield |
|
|
6.83 |
% |
|
|
6.70 |
% |
|
|
0.13 |
|
|
|
|
Loan yield, excluding PPP* |
|
|
6.89 |
% |
|
|
6.46 |
% |
|
|
0.43 |
|
|
|
|
Cost of deposits |
|
|
3.11 |
% |
|
|
3.32 |
% |
|
|
(0.21 |
) |
|
|
|
Efficiency ratio |
|
|
49.25 |
% |
|
|
47.71 |
% |
|
|
1.54 |
|
|
|
|
Core efficiency ratio* |
|
|
47.84 |
% |
|
|
47.09 |
% |
|
|
0.75 |
|
|
|
|
Balance Sheet Trends: |
|
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|||||||
Total assets |
|
$ |
22,028,565 |
|
|
$ |
21,751,614 |
|
|
$ |
276,951 |
|
|
1.3 |
% |
Total loans and leases |
|
$ |
13,910,907 |
|
|
$ |
15,063,034 |
|
|
$ |
(1,152,127 |
) |
|
(7.6 |
)% |
Total loans and leases, excluding PPP* |
|
$ |
13,722,144 |
|
|
$ |
14,816,776 |
|
|
$ |
(1,094,632 |
) |
|
(7.4 |
)% |
Non-interest bearing demand deposits |
|
$ |
4,490,198 |
|
|
$ |
3,487,517 |
|
|
$ |
1,002,681 |
|
|
28.8 |
% |
Total deposits |
|
$ |
17,950,431 |
|
|
$ |
17,723,617 |
|
|
$ |
226,814 |
|
|
1.3 |
% |
Capital Metrics: |
|
|
|
|
|
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|
|||||||
Common Equity |
|
$ |
1,318,858 |
|
|
$ |
1,283,226 |
|
|
$ |
35,632 |
|
|
2.8 |
% |
Tangible Common Equity* |
|
$ |
1,315,229 |
|
|
$ |
1,279,597 |
|
|
$ |
35,632 |
|
|
2.8 |
% |
Common Equity to Total Assets |
|
|
6.0 |
% |
|
|
5.9 |
% |
|
|
0.1 |
|
|
|
|
Tangible Common Equity to Tangible Assets* |
|
|
6.0 |
% |
|
|
5.9 |
% |
|
|
0.1 |
|
|
|
|
Tangible Common Equity to Tangible Assets, excluding PPP* |
|
|
6.0 |
% |
|
|
6.0 |
% |
|
|
0.0 |
|
|
|
|
Book Value per common share |
|
$ |
42.16 |
|
|
$ |
41.08 |
|
|
$ |
1.08 |
|
|
2.6 |
% |
Tangible Book Value per common share* |
|
$ |
42.04 |
|
|
$ |
40.96 |
|
|
$ |
1.08 |
|
|
2.6 |
% |
Common equity Tier 1 capital ratio (1) |
|
|
10.3 |
% |
|
|
9.6 |
% |
|
|
0.7 |
|
|
|
|
Total risk based capital ratio (1) |
|
|
13.1 |
% |
|
|
12.3 |
% |
|
|
0.8 |
|
|
|
|
|
|
|
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(1) Regulatory capital ratios as of June 30, 2023 are estimates. |
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* Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
Financial Highlights
(Dollars in thousands, except per share data) |
|
At or Three Months Ended |
|
Increase (Decrease) |
|
Six Months Ended |
|
Increase (Decrease) |
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|
June 30, 2023 |
|
June 30, 2022 |
|
|
June 30, 2023 |
|
June 30, 2022 |
|
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Profitability Metrics: |
|
|
|
|
|
|
|
|
|
|
|
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|
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||||||||||||||
Net income available for common shareholders |
|
$ |
44,007 |
|
|
$ |
56,519 |
|
|
$ |
(12,512 |
) |
|
(22.1 |
)% |
|
$ |
94,272 |
|
|
$ |
131,415 |
|
|
$ |
(37,143 |
) |
|
(28.3 |
)% |
Diluted earnings per share |
|
$ |
1.39 |
|
|
$ |
1.68 |
|
|
$ |
(0.29 |
) |
|
(17.3 |
)% |
|
$ |
2.95 |
|
|
$ |
3.87 |
|
|
$ |
(0.92 |
) |
|
(23.8 |
)% |
Core earnings* |
|
$ |
52,163 |
|
|
$ |
59,367 |
|
|
$ |
(7,204 |
) |
|
(12.1 |
)% |
|
$ |
103,306 |
|
|
$ |
134,777 |
|
|
$ |
(31,471 |
) |
|
(23.4 |
)% |
Core earnings per share* |
|
$ |
1.65 |
|
|
$ |
1.77 |
|
|
$ |
(0.12 |
) |
|
(6.8 |
)% |
|
$ |
3.22 |
|
|
$ |
3.97 |
|
|
$ |
(0.75 |
) |
|
(18.9 |
)% |
Core earnings, excluding PPP* |
|
$ |
54,231 |
|
|
$ |
46,301 |
|
|
$ |
7,930 |
|
|
17.1 |
% |
|
$ |
95,768 |
|
|
$ |
96,998 |
|
|
$ |
(1,230 |
) |
|
(1.3 |
)% |
Core earnings per share, excluding PPP* |
|
$ |
1.72 |
|
|
$ |
1.38 |
|
|
$ |
0.34 |
|
|
24.6 |
% |
|
$ |
2.99 |
|
|
$ |
2.86 |
|
|
$ |
0.13 |
|
|
4.5 |
% |
Return on average assets ("ROAA") |
|
|
0.88 |
% |
|
|
1.17 |
% |
|
|
(0.29 |
) |
|
|
|
|
0.96 |
% |
|
|
1.39 |
% |
|
|
(0.43 |
) |
|
|
||
Core ROAA* |
|
|
1.03 |
% |
|
|
1.23 |
% |
|
|
(0.20 |
) |
|
|
|
|
1.04 |
% |
|
|
1.43 |
% |
|
|
(0.39 |
) |
|
|
||
Core ROAA, excluding PPP* |
|
|
1.07 |
% |
|
|
1.04 |
% |
|
|
0.03 |
|
|
|
|
|
0.97 |
% |
|
|
1.04 |
% |
|
|
(0.07 |
) |
|
|
||
Return on average common equity ("ROCE") |
|
|
13.22 |
% |
|
|
18.21 |
% |
|
|
(4.99 |
) |
|
|
|
|
14.57 |
% |
|
|
21.23 |
% |
|
|
(6.66 |
) |
|
|
||
Core ROCE* |
|
|
15.67 |
% |
|
|
19.13 |
% |
|
|
(3.46 |
) |
|
|
|
|
15.97 |
% |
|
|
21.77 |
% |
|
|
(5.80 |
) |
|
|
||
Adjusted pre-tax pre-provision net income* |
|
$ |
96,833 |
|
|
$ |
105,692 |
|
|
$ |
(8,859 |
) |
|
(8.4 |
)% |
|
$ |
186,115 |
|
|
$ |
218,341 |
|
|
$ |
(32,226 |
) |
|
(14.8 |
)% |
Adjusted pre-tax pre-provision net income ROAA, excluding PPP* |
|
|
1.83 |
% |
|
|
1.85 |
% |
|
|
(0.02 |
) |
|
|
|
|
1.69 |
% |
|
|
1.86 |
% |
|
|
(0.17 |
) |
|
|
||
Net interest margin, tax equivalent |
|
|
3.15 |
% |
|
|
3.39 |
% |
|
|
(0.24 |
) |
|
|
|
|
3.06 |
% |
|
|
3.49 |
% |
|
|
(0.43 |
) |
|
|
||
Net interest margin, tax equivalent, excluding PPP* |
|
|
3.20 |
% |
|
|
3.32 |
% |
|
|
(0.12 |
) |
|
|
|
|
3.01 |
% |
|
|
3.32 |
% |
|
|
(0.31 |
) |
|
|
||
Loan yield |
|
|
6.83 |
% |
|
|
4.54 |
% |
|
|
2.29 |
|
|
|
|
|
6.77 |
% |
|
|
4.60 |
% |
|
|
2.17 |
|
|
|
||
Loan yield, excluding PPP* |
|
|
6.89 |
% |
|
|
4.56 |
% |
|
|
2.33 |
|
|
|
|
|
6.67 |
% |
|
|
4.50 |
% |
|
|
2.17 |
|
|
|
||
Cost of deposits |
|
|
3.11 |
% |
|
|
0.54 |
% |
|
|
2.57 |
|
|
|
|
|
3.22 |
% |
|
|
0.44 |
% |
|
|
2.78 |
|
|
|
||
Efficiency ratio |
|
|
49.25 |
% |
|
|
42.14 |
% |
|
|
7.11 |
|
|
|
|
|
48.51 |
% |
|
|
40.76 |
% |
|
|
7.75 |
|
|
|
||
Core efficiency ratio* |
|
|
47.84 |
% |
|
|
41.74 |
% |
|
|
6.10 |
|
|
|
|
|
47.49 |
% |
|
|
40.59 |
% |
|
|
6.90 |
|
|
|
||
Balance Sheet Trends: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets |
$ |
22,028,565 |
$ |
20,251,996 |
|
|
$ |
1,776,569 |
|
|
8.8 |
% |
|
|
|
|
|
|
|
|
||||||||||
Total loans and leases |
|
$ |
13,910,907 |
|
|
$ |
15,664,353 |
|
|
$ |
(1,753,446 |
) |
|
(11.2 |
)% |
|
|
|
|
|
|
|
|
|||||||
Total loans and leases, excluding PPP* |
|
$ |
13,722,144 |
|
|
$ |
14,094,193 |
|
|
$ |
(372,049 |
) |
|
(2.6 |
)% |
|
|
|
|
|
|
|
|
|||||||
Non-interest bearing demand deposits |
|
$ |
4,490,198 |
|
|
$ |
4,683,030 |
|
|
$ |
(192,832 |
) |
|
(4.1 |
)% |
|
|
|
|
|
|
|
|
|||||||
Total deposits |
|
$ |
17,950,431 |
|
|
$ |
16,944,719 |
|
|
$ |
1,005,712 |
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
|||||||
Capital Metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Common Equity |
|
$ |
1,318,858 |
|
|
$ |
1,215,596 |
|
|
$ |
103,262 |
|
|
8.5 |
% |
|
|
|
|
|
|
|
|
|||||||
Tangible Common Equity* |
|
$ |
1,315,229 |
|
|
$ |
1,211,967 |
|
|
$ |
103,262 |
|
|
8.5 |
% |
|
|
|
|
|
|
|
|
|||||||
Common Equity to Total Assets |
|
|
6.0 |
% |
|
|
6.0 |
% |
|
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tangible Common Equity to Tangible Assets* |
|
|
6.0 |
% |
|
|
6.0 |
% |
|
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tangible Common Equity to Tangible Assets, excluding PPP* |
|
|
6.0 |
% |
|
|
6.5 |
% |
|
|
(0.5 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
Book Value per common share |
|
$ |
42.16 |
|
|
$ |
37.46 |
|
|
$ |
4.70 |
|
|
12.5 |
% |
|
|
|
|
|
|
|
|
|||||||
Tangible Book Value per common share* |
|
$ |
42.04 |
|
|
$ |
37.35 |
|
|
$ |
4.69 |
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
|||||||
Common equity Tier 1 capital ratio (1) |
|
|
10.3 |
% |
|
|
9.7 |
% |
|
|
0.6 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total risk based capital ratio (1) |
|
|
13.1 |
% |
|
|
12.6 |
% |
|
|
0.5 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(1) Regulatory capital ratios as of June 30, 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) |
June 30,
|
|
% of
|
|
March 31,
|
|
% of
|
|
June 30,
|
|
% of
|
||||||
Loans and Leases Held for Investment |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & industrial: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Specialty lending |
$ |
5,534,832 |
|
40.0 |
% |
|
$ |
5,519,176 |
|
37.7 |
% |
|
$ |
4,599,640 |
|
29.4 |
% |
Other commercial & industrial |
|
1,052,145 |
|
7.6 |
|
|
|
1,168,161 |
|
8.0 |
|
|
|
1,037,444 |
|
6.7 |
|
Multifamily |
|
2,151,734 |
|
15.6 |
|
|
|
2,195,211 |
|
15.0 |
|
|
|
2,008,784 |
|
12.8 |
|
Loans to mortgage companies |
|
1,108,598 |
|
8.0 |
|
|
|
1,374,894 |
|
9.4 |
|
|
|
1,975,189 |
|
12.6 |
|
Commercial real estate owner occupied |
|
842,042 |
|
6.1 |
|
|
|
895,314 |
|
6.1 |
|
|
|
710,577 |
|
4.5 |
|
Loans receivable, PPP |
|
188,763 |
|
1.4 |
|
|
|
246,258 |
|
1.7 |
|
|
|
1,570,160 |
|
10.0 |
|
Commercial real estate non-owner occupied |
|
1,211,091 |
|
8.8 |
|
|
|
1,245,248 |
|
8.5 |
|
|
|
1,152,869 |
|
7.4 |
|
Construction |
|
212,214 |
|
1.5 |
|
|
|
188,123 |
|
1.3 |
|
|
|
195,687 |
|
1.2 |
|
Total commercial loans and leases |
|
12,301,419 |
|
89.0 |
|
|
|
12,832,385 |
|
87.7 |
|
|
|
13,250,350 |
|
84.6 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Residential |
|
487,199 |
|
3.5 |
|
|
|
494,815 |
|
3.4 |
|
|
|
457,768 |
|
3.0 |
|
Manufactured housing |
|
41,664 |
|
0.3 |
|
|
|
43,272 |
|
0.3 |
|
|
|
48,570 |
|
0.3 |
|
Installment: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Personal |
|
752,470 |
|
5.4 |
|
|
|
849,420 |
|
5.8 |
|
|
|
1,613,628 |
|
10.3 |
|
Other |
|
250,047 |
|
1.8 |
|
|
|
419,085 |
|
2.8 |
|
|
|
287,442 |
|
1.8 |
|
Total installment loans |
|
1,002,517 |
|
7.2 |
|
|
|
1,268,505 |
|
8.6 |
|
|
|
1,901,070 |
|
12.1 |
|
Total consumer loans |
|
1,531,380 |
|
11.0 |
|
|
|
1,806,592 |
|
12.3 |
|
|
|
2,407,408 |
|
15.4 |
|
Total loans and leases held for investment |
$ |
13,832,799 |
|
100.0 |
% |
|
$ |
14,638,977 |
|
100.0 |
% |
|
$ |
15,657,758 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Multifamily |
$ |
— |
|
— |
% |
|
$ |
4,051 |
|
1.0 |
% |
|
$ |
4,136 |
|
62.7 |
% |
Commercial real estate non-owner occupied |
|
— |
|
— |
|
|
|
16,000 |
|
3.7 |
|
|
|
— |
|
— |
|
Total commercial loans and leases |
|
— |
|
— |
|
|
|
20,051 |
|
4.7 |
|
|
|
4,136 |
|
62.7 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Residential |
|
1,234 |
|
1.6 |
|
|
|
821 |
|
0.2 |
|
|
|
2,459 |
|
37.3 |
|
Installment: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Personal |
|
76,874 |
|
98.4 |
|
|
|
307,336 |
|
72.5 |
|
|
|
— |
|
— |
|
Other |
|
— |
|
— |
|
|
|
95,849 |
|
22.6 |
|
|
|
— |
|
— |
|
Total installment loans |
|
76,874 |
|
98.4 |
|
|
|
403,185 |
|
95.1 |
|
|
|
— |
|
— |
|
Total consumer loans |
|
78,108 |
|
100.0 |
|
|
|
404,006 |
|
95.3 |
|
|
|
2,459 |
|
37.3 |
|
Total loans held for sale |
$ |
78,108 |
|
100.0 |
% |
|
$ |
424,057 |
|
100.0 |
% |
|
$ |
6,595 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total loans and leases portfolio |
$ |
13,910,907 |
|
|
|
$ |
15,063,034 |
|
|
|
$ |
15,664,353 |
|
|
Loans and Leases Held for Investment
Loans and leases held for investment were
On June 15, 2023, Customers acquired
Loans and leases held for investment of
Loans Held for Sale
Loans held for sale decreased
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
|
|
At or Three Months Ended |
|
Increase
|
||||||||||||||||
(Dollars in thousands) |
June 30,
|
|
March 31,
|
|
|
June 30,
|
|
June 30,
|
|
||||||||||||||
Allowance for credit losses on loans and leases |
$ |
139,656 |
|
|
$ |
130,281 |
|
|
$ |
9,375 |
|
|
$ |
139,656 |
|
|
$ |
156,530 |
|
|
$ |
(16,874 |
) |
Provision for credit losses on loans and leases |
$ |
22,363 |
|
|
$ |
18,008 |
|
|
$ |
4,355 |
|
|
$ |
22,363 |
|
|
$ |
24,164 |
|
|
$ |
(1,801 |
) |
Net charge-offs from loans held for investment |
$ |
15,564 |
|
|
$ |
18,651 |
|
|
$ |
(3,087 |
) |
|
$ |
15,564 |
|
|
$ |
13,481 |
|
|
$ |
2,083 |
|
Annualized net charge-offs to average loans and leases |
|
0.42 |
% |
|
|
0.49 |
% |
|
|
|
|
0.42 |
% |
|
|
0.36 |
% |
|
|
||||
Coverage of credit loss reserves for loans and leases held for investment |
|
1.09 |
% |
|
|
0.97 |
% |
|
|
|
|
1.09 |
% |
|
|
1.14 |
% |
|
|
||||
Coverage of credit loss reserves for loans and leases held for investment, excluding PPP* |
|
1.11 |
% |
|
|
0.99 |
% |
|
|
|
|
1.11 |
% |
|
|
1.28 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
* 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. |
The decrease in net charge-offs in Q2 2023 compared to Q1 2023 was primarily due to a charge-off of a non-owner occupied commercial real estate loan in Q1 2023 and a decrease in consumer installment net charge-offs in Q2 2023 compared to Q1 2023. The net charge-offs of
The increase in net charge-offs in Q2 2023 compared to Q2 2022, excluding the charge-offs for certain PCD loans acquired from FDIC, was primarily due to an increase in consumer installment net charge-offs in Q2 2023 compared to Q2 2022.
Provision for Credit Losses
|
Three Months Ended |
|
Increase
|
|
Three Months Ended |
|
Increase
|
|||||||||||||||
(Dollars in thousands) |
June 30,
|
|
March 31,
|
|
|
June 30,
|
|
June 30,
|
|
|||||||||||||
Provision for credit losses on loans and leases |
$ |
22,363 |
|
|
$ |
18,008 |
|
$ |
4,355 |
|
|
$ |
22,363 |
|
|
$ |
24,164 |
|
|
$ |
(1,801 |
) |
Provision (benefit) for credit losses on available for sale debt securities |
|
1,266 |
|
|
|
1,595 |
|
|
(329 |
) |
|
|
1,266 |
|
|
|
(317 |
) |
|
|
1,583 |
|
Provision for credit losses |
|
23,629 |
|
|
|
19,603 |
|
|
4,026 |
|
|
|
23,629 |
|
|
|
23,847 |
|
|
|
(218 |
) |
Provision (benefit) for credit losses on unfunded commitments |
|
(304 |
) |
|
|
280 |
|
|
(584 |
) |
|
|
(304 |
) |
|
|
608 |
|
|
|
(912 |
) |
Total provision for credit losses |
$ |
23,325 |
|
|
$ |
19,883 |
|
$ |
3,442 |
|
|
$ |
23,325 |
|
|
$ |
24,455 |
|
|
$ |
(1,130 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
The provision for credit losses on loans and leases in Q2 2023 was
The provision for credit losses on loans and leases in Q2 2023 was
Asset Quality
The following table presents asset quality metrics as of the dates indicated:
(Dollars in thousands) |
June 30,
|
|
March 31,
|
|
Increase
|
|
June 30,
|
|
June 30,
|
|
Increase
|
||||||||||||
Non-performing assets ("NPAs"): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nonaccrual / non-performing loans ("NPLs") |
$ |
28,244 |
|
|
$ |
32,124 |
|
|
$ |
(3,880 |
) |
|
$ |
28,244 |
|
|
$ |
28,064 |
|
|
$ |
180 |
|
Non-performing assets |
$ |
28,380 |
|
|
$ |
32,260 |
|
|
$ |
(3,880 |
) |
|
$ |
28,380 |
|
|
$ |
28,150 |
|
|
$ |
230 |
|
NPLs to total loans and leases |
|
0.20 |
% |
|
|
0.21 |
% |
|
|
|
|
0.20 |
% |
|
|
0.18 |
% |
|
|
||||
Reserves to NPLs |
|
494.46 |
% |
|
|
405.56 |
% |
|
|
|
|
494.46 |
% |
|
|
557.76 |
% |
|
|
||||
NPAs to total assets |
|
0.13 |
% |
|
|
0.15 |
% |
|
|
|
|
0.13 |
% |
|
|
0.14 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans and leases (1) risk ratings: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loans and leases (2) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pass |
$ |
10,667,619 |
|
|
$ |
10,928,620 |
|
|
$ |
(261,001 |
) |
|
$ |
10,667,619 |
|
|
$ |
9,355,846 |
|
|
$ |
1,311,773 |
|
Special Mention (3) |
|
166,468 |
|
|
|
136,986 |
|
|
|
29,482 |
|
|
|
166,468 |
|
|
|
106,566 |
|
|
|
59,902 |
|
Substandard (3) |
|
272,301 |
|
|
|
273,154 |
|
|
|
(853 |
) |
|
|
272,301 |
|
|
|
343,175 |
|
|
|
(70,874 |
) |
Total commercial loans and leases |
|
11,106,388 |
|
|
|
11,338,760 |
|
|
|
(232,372 |
) |
|
|
11,106,388 |
|
|
|
9,805,587 |
|
|
|
1,300,801 |
|
Consumer loans |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Performing |
|
1,508,208 |
|
|
|
1,787,123 |
|
|
|
(278,915 |
) |
|
|
1,508,208 |
|
|
|
2,392,852 |
|
|
|
(884,644 |
) |
Non-performing |
|
23,172 |
|
|
|
19,469 |
|
|
|
3,703 |
|
|
|
23,172 |
|
|
|
14,556 |
|
|
|
8,616 |
|
Total consumer loans |
|
1,531,380 |
|
|
|
1,806,592 |
|
|
|
(275,212 |
) |
|
|
1,531,380 |
|
|
|
2,407,408 |
|
|
|
(876,028 |
) |
Loans and leases receivable (1) |
$ |
12,637,768 |
|
|
$ |
13,145,352 |
|
|
$ |
(507,584 |
) |
|
$ |
12,637,768 |
|
|
$ |
12,212,995 |
|
|
$ |
424,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
(3) |
Includes |
Over the last decade, we have 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, we employ a bottom-up data driven approach to analyze the commercial portfolio.
Total consumer installment loans held for investment at June 30, 2023 were less than
Non-performing loans at June 30, 2023 were essentially flat at
Investment Securities
Our investment securities portfolio, including debt securities 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 our liquidity position.
The following table presents the composition of our investment securities portfolio as of the dates indicated:
(Dollars in thousands) |
June 30,
|
|
March 31,
|
|
June 30,
|
|||
Debt securities, available for sale |
$ |
2,797,940 |
|
$ |
2,900,259 |
|
$ |
3,120,111 |
Equity securities |
|
26,698 |
|
|
26,710 |
|
|
24,771 |
Investment securities, at fair value |
|
2,824,638 |
|
|
2,926,969 |
|
|
3,144,882 |
Debt securities, held to maturity |
|
1,258,560 |
|
|
870,294 |
|
|
495,039 |
Total investment securities portfolio |
$ |
4,083,198 |
|
$ |
3,797,263 |
|
$ |
3,639,921 |
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. Our securities portfolio is highly liquid, short in duration, and high in yield. At June 30, 2023, our AFS debt securities portfolio had a spot yield of
At June 30, 2023, our HTM debt securities portfolio represented only
As a part of the sales of consumer installment loans that were classified as held for sale, Customers provided some financing to the purchaser for a portion of the sale price in the form of
Deposits
The following table presents the composition of our deposit portfolio as of the dates indicated:
(Dollars in thousands) |
June 30,
|
|
% of
|
|
March 31,
|
|
% of
|
|
June 30,
|
|
% of
|
||||||
Demand, non-interest bearing |
$ |
4,490,198 |
|
25.0 |
% |
|
$ |
3,487,517 |
|
19.7 |
% |
|
$ |
4,683,030 |
|
27.6 |
% |
Demand, interest bearing |
|
5,551,037 |
|
30.9 |
|
|
|
5,791,302 |
|
32.7 |
|
|
|
6,644,398 |
|
39.2 |
|
Total demand deposits |
|
10,041,235 |
|
55.9 |
|
|
|
9,278,819 |
|
52.4 |
|
|
|
11,327,428 |
|
66.8 |
|
Savings |
|
1,048,229 |
|
5.8 |
|
|
|
924,359 |
|
5.2 |
|
|
|
640,062 |
|
3.8 |
|
Money market |
|
2,004,264 |
|
11.2 |
|
|
|
2,019,633 |
|
11.4 |
|
|
|
4,254,205 |
|
25.1 |
|
Time deposits |
|
4,856,703 |
|
27.1 |
|
|
|
5,500,806 |
|
31.0 |
|
|
|
723,024 |
|
4.3 |
|
Total deposits |
$ |
17,950,431 |
|
100.0 |
% |
|
$ |
17,723,617 |
|
100.0 |
% |
|
$ |
16,944,719 |
|
100.0 |
% |
Total deposits increased
Total deposits increased
__________________________________
|
Borrowings
The following table presents the composition of our borrowings as of the dates indicated:
(Dollars in thousands) |
June 30,
|
|
March 31,
|
|
June 30,
|
|||
Federal funds purchased |
$ |
— |
|
$ |
— |
|
$ |
770,000 |
FHLB advances |
|
2,046,142 |
|
|
2,052,143 |
|
|
635,000 |
Senior notes |
|
123,710 |
|
|
123,645 |
|
|
123,450 |
Subordinated debt |
|
182,091 |
|
|
182,021 |
|
|
181,812 |
Total borrowings |
$ |
2,351,943 |
|
$ |
2,357,809 |
|
$ |
1,710,262 |
Total borrowings were
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) |
June 30,
|
|
March 31,
|
|
June 30,
|
||||||
Customers Bancorp, Inc. |
|
|
|
|
|
||||||
Common Equity |
$ |
1,318,858 |
|
|
$ |
1,283,226 |
|
|
$ |
1,215,596 |
|
Tangible Common Equity* |
$ |
1,315,229 |
|
|
$ |
1,279,597 |
|
|
$ |
1,211,967 |
|
Common Equity to Total Assets |
|
6.0 |
% |
|
|
5.9 |
% |
|
|
6.0 |
% |
Tangible Common Equity to Tangible Assets* |
|
6.0 |
% |
|
|
5.9 |
% |
|
|
6.0 |
% |
Tangible Common Equity to Tangible Assets, excluding PPP* |
|
6.0 |
% |
|
|
6.0 |
% |
|
|
6.5 |
% |
Book Value per common share |
$ |
42.16 |
|
|
$ |
41.08 |
|
|
$ |
37.46 |
|
Tangible Book Value per common share* |
$ |
42.04 |
|
|
$ |
40.96 |
|
|
$ |
37.35 |
|
Common equity Tier 1 (CET 1) capital ratio (1) |
|
10.3 |
% |
|
|
9.6 |
% |
|
|
9.7 |
% |
Total risk based capital ratio (1) |
|
13.1 |
% |
|
|
12.3 |
% |
|
|
12.6 |
% |
|
|
|
|
|
|
||||||
(1) Regulatory capital ratios as of June 30, 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 ratio") were
At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At June 30, 2023, estimated Tier 1 capital (estimate) and total risk-based capital (estimate) were
Even though Customers remains well capitalized by all regulatory measures, its goal is to increase its CET 1 ratio at year-end 2023 to be between
Key Profitability Trends
Net Interest Income
Net interest income totaled
Net interest income totaled
Non-Interest Income
The following table presents details of non-interest income for the periods indicated:
|
Three Months Ended |
|
Increase
|
|
Three Months Ended |
|
Increase
|
|||||||||||||||
(Dollars in thousands) |
June 30,
|
|
March 31,
|
|
|
June 30,
|
|
June 30,
|
|
|||||||||||||
Commercial lease income |
$ |
8,917 |
|
|
$ |
9,326 |
|
$ |
(409 |
) |
|
$ |
8,917 |
|
|
$ |
6,592 |
|
|
$ |
2,325 |
|
Loan fees |
|
4,271 |
|
|
|
3,990 |
|
|
281 |
|
|
|
4,271 |
|
|
|
2,618 |
|
|
|
1,653 |
|
Bank-owned life insurance |
|
4,997 |
|
|
|
2,647 |
|
|
2,350 |
|
|
|
4,997 |
|
|
|
1,947 |
|
|
|
3,050 |
|
Mortgage warehouse transactional fees |
|
1,376 |
|
|
|
1,074 |
|
|
302 |
|
|
|
1,376 |
|
|
|
1,883 |
|
|
|
(507 |
) |
Gain (loss) on sale of SBA and other loans |
|
(761 |
) |
|
|
— |
|
|
(761 |
) |
|
|
(761 |
) |
|
|
1,542 |
|
|
|
(2,303 |
) |
Loss on sale of capital call lines of credit |
|
(5,037 |
) |
|
|
— |
|
|
(5,037 |
) |
|
|
(5,037 |
) |
|
|
— |
|
|
|
(5,037 |
) |
Net gain (loss) on sale of investment securities |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(3,029 |
) |
|
|
3,029 |
|
Other |
|
2,234 |
|
|
|
1,084 |
|
|
1,150 |
|
|
|
2,234 |
|
|
|
1,193 |
|
|
|
1,041 |
|
Total non-interest income |
$ |
15,997 |
|
|
$ |
18,121 |
|
$ |
(2,124 |
) |
|
$ |
15,997 |
|
|
$ |
12,746 |
|
|
$ |
3,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Three Months Ended |
|
Increase
|
||||||||||||
(Dollars in thousands) |
June 30,
|
|
March 31,
|
|
|
June 30,
|
|
June 30,
|
|
||||||||||
Salaries and employee benefits |
$ |
33,120 |
|
$ |
32,345 |
|
$ |
775 |
|
|
$ |
33,120 |
|
$ |
25,334 |
|
$ |
7,786 |
|
Technology, communication and bank operations |
|
16,407 |
|
|
16,589 |
|
|
(182 |
) |
|
|
16,407 |
|
|
22,738 |
|
|
(6,331 |
) |
Commercial lease depreciation |
|
7,328 |
|
|
7,875 |
|
|
(547 |
) |
|
|
7,328 |
|
|
5,552 |
|
|
1,776 |
|
Professional services |
|
9,192 |
|
|
7,596 |
|
|
1,596 |
|
|
|
9,192 |
|
|
7,415 |
|
|
1,777 |
|
Loan servicing |
|
4,777 |
|
|
4,661 |
|
|
116 |
|
|
|
4,777 |
|
|
4,341 |
|
|
436 |
|
Occupancy |
|
2,519 |
|
|
2,760 |
|
|
(241 |
) |
|
|
2,519 |
|
|
4,279 |
|
|
(1,760 |
) |
FDIC assessments, non-income taxes and regulatory fees |
|
9,780 |
|
|
2,728 |
|
|
7,052 |
|
|
|
9,780 |
|
|
1,619 |
|
|
8,161 |
|
Advertising and promotion |
|
546 |
|
|
1,049 |
|
|
(503 |
) |
|
|
546 |
|
|
353 |
|
|
193 |
|
Other |
|
5,628 |
|
|
4,530 |
|
|
1,098 |
|
|
|
5,628 |
|
|
4,574 |
|
|
1,054 |
|
Total non-interest expense |
$ |
89,297 |
|
$ |
80,133 |
|
$ |
9,164 |
|
|
$ |
89,297 |
|
$ |
76,205 |
|
$ |
13,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The management of non-interest expenses remains a priority for us. However, this will not deter us from making investments in new technologies to support efficient and responsible growth in the future.
Non-interest expenses totaled
Non-interest expenses totaled
Taxes
Income tax expense increased by
Income tax expense increased by
The effective tax rate for Q2 2023 was
Outlook
“Looking ahead, we will continue to moderate growth, or even reduce the size of the balance sheet, as we optimize the balance sheet and materially improve our capital ratios, maintain positive operating leverage with prudent expense management, and continue to improve deposits and liquidity. We expect 2023 core loans to be essentially flat to down. Deposits are expected to remain relatively flat with a focus on improving our funding profile and reducing high cost deposits. We expect full year 2023 net interest margin, excluding PPP* to be at the upper end of the previously guided range 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, July 28, 2023 |
|
Time: |
9:00 AM EDT |
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 2nd 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 over
-
#5 in top-performing banks with assets between
and$10 billion in 2022 per American Banker;$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, the impact of COVID-19 and its variants on the
Q2 2023 Overview
The following table presents a summary of key earnings and performance metrics for the quarter ended June 30, 2023 and the preceding four quarters:
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||||||
EARNINGS SUMMARY - UNAUDITED |
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
(Dollars in thousands, except per share data and stock price data) |
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
Six Months Ended
|
||||||||||||||||
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
GAAP Profitability Metrics: |
|||||||||||||||||||||||||||
Net income available to common shareholders |
$ |
44,007 |
$ |
50,265 |
$ |
25,623 |
$ |
61,364 |
$ |
56,519 |
$ |
94,272 |
$ |
131,415 |
|||||||||||||
Per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Earnings per share - basic |
$ |
1.41 |
|
|
$ |
1.58 |
|
|
$ |
0.79 |
|
|
$ |
1.89 |
|
|
$ |
1.73 |
|
|
$ |
2.99 |
|
|
$ |
4.00 |
|
Earnings per share - diluted |
$ |
1.39 |
|
|
$ |
1.55 |
|
|
$ |
0.77 |
|
|
$ |
1.85 |
|
|
$ |
1.68 |
|
|
$ |
2.95 |
|
|
$ |
3.87 |
|
Book value per common share (1) |
$ |
42.16 |
|
|
$ |
41.08 |
|
|
$ |
39.08 |
|
|
$ |
38.46 |
|
|
$ |
37.46 |
|
|
$ |
42.16 |
|
|
$ |
37.46 |
|
CUBI stock price (1) |
$ |
30.26 |
|
|
$ |
18.52 |
|
|
$ |
28.34 |
|
|
$ |
29.48 |
|
|
$ |
33.90 |
|
|
$ |
30.26 |
|
|
$ |
33.90 |
|
CUBI stock price as % of book value (1) |
|
72 |
% |
|
|
45 |
% |
|
|
73 |
% |
|
|
77 |
% |
|
|
90 |
% |
|
|
72 |
% |
|
|
90 |
% |
Average shares outstanding - basic |
|
31,254,125 |
|
|
|
31,819,203 |
|
|
|
32,413,459 |
|
|
|
32,455,814 |
|
|
|
32,712,616 |
|
|
|
31,535,103 |
|
|
|
32,834,150 |
|
Average shares outstanding - diluted |
|
31,591,142 |
|
|
|
32,345,017 |
|
|
|
33,075,422 |
|
|
|
33,226,607 |
|
|
|
33,579,013 |
|
|
|
31,965,997 |
|
|
|
33,950,973 |
|
Shares outstanding (1) |
|
31,282,318 |
|
|
|
31,239,750 |
|
|
|
32,373,697 |
|
|
|
32,475,502 |
|
|
|
32,449,486 |
|
|
|
31,282,318 |
|
|
|
32,449,486 |
|
Return on average assets ("ROAA") |
|
0.88 |
% |
|
|
1.03 |
% |
|
|
0.55 |
% |
|
|
1.24 |
% |
|
|
1.17 |
% |
|
|
0.96 |
% |
|
|
1.39 |
% |
Return on average common equity ("ROCE") |
|
13.22 |
% |
|
|
16.00 |
% |
|
|
8.05 |
% |
|
|
19.33 |
% |
|
|
18.21 |
% |
|
|
14.57 |
% |
|
|
21.23 |
% |
Net interest margin, tax equivalent |
|
3.15 |
% |
|
|
2.96 |
% |
|
|
2.67 |
% |
|
|
3.16 |
% |
|
|
3.39 |
% |
|
|
3.06 |
% |
|
|
3.49 |
% |
Efficiency ratio |
|
49.25 |
% |
|
|
47.71 |
% |
|
|
49.20 |
% |
|
|
50.00 |
% |
|
|
42.14 |
% |
|
|
48.51 |
% |
|
|
40.76 |
% |
Non-GAAP Profitability Metrics (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Core earnings |
$ |
52,163 |
|
|
$ |
51,143 |
|
|
$ |
39,368 |
|
|
$ |
82,270 |
|
|
$ |
59,367 |
|
|
$ |
103,306 |
|
|
$ |
134,777 |
|
Adjusted pre-tax pre-provision net income |
$ |
96,833 |
|
|
$ |
89,282 |
|
|
$ |
81,377 |
|
|
$ |
100,994 |
|
|
$ |
105,692 |
|
|
$ |
186,115 |
|
|
$ |
218,341 |
|
Per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Core earnings per share - diluted |
$ |
1.65 |
|
|
$ |
1.58 |
|
|
$ |
1.19 |
|
|
$ |
2.48 |
|
|
$ |
1.77 |
|
|
$ |
3.22 |
|
|
$ |
3.97 |
|
Tangible book value per common share (1) |
$ |
42.04 |
|
|
$ |
40.96 |
|
|
$ |
38.97 |
|
|
$ |
38.35 |
|
|
$ |
37.35 |
|
|
$ |
42.04 |
|
|
$ |
37.35 |
|
CUBI stock price as % of tangible book value (1) |
|
72 |
% |
|
|
45 |
% |
|
|
73 |
% |
|
|
77 |
% |
|
|
91 |
% |
|
|
72 |
% |
|
|
91 |
% |
Core ROAA |
|
1.03 |
% |
|
|
1.05 |
% |
|
|
0.81 |
% |
|
|
1.64 |
% |
|
|
1.23 |
% |
|
|
1.04 |
% |
|
|
1.43 |
% |
Core ROCE |
|
15.67 |
% |
|
|
16.28 |
% |
|
|
12.36 |
% |
|
|
25.91 |
% |
|
|
19.13 |
% |
|
|
15.97 |
% |
|
|
21.77 |
% |
Adjusted ROAA - pre-tax and pre-provision |
|
1.79 |
% |
|
|
1.72 |
% |
|
|
1.56 |
% |
|
|
1.95 |
% |
|
|
2.11 |
% |
|
|
1.76 |
% |
|
|
2.25 |
% |
Adjusted ROCE - pre-tax and pre-provision |
|
28.01 |
% |
|
|
27.33 |
% |
|
|
24.59 |
% |
|
|
31.01 |
% |
|
|
33.37 |
% |
|
|
27.68 |
% |
|
|
34.62 |
% |
Net interest margin, tax equivalent, excluding PPP loans |
|
3.20 |
% |
|
|
2.80 |
% |
|
|
2.87 |
% |
|
|
3.18 |
% |
|
|
3.32 |
% |
|
|
3.01 |
% |
|
|
3.32 |
% |
Core efficiency ratio |
|
47.84 |
% |
|
|
47.09 |
% |
|
|
49.12 |
% |
|
|
42.57 |
% |
|
|
41.74 |
% |
|
|
47.49 |
% |
|
|
40.59 |
% |
Asset Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net charge-offs |
$ |
15,564 |
|
|
$ |
18,651 |
|
|
$ |
27,164 |
|
|
$ |
18,497 |
|
|
$ |
13,481 |
|
|
$ |
34,215 |
|
|
$ |
20,707 |
|
Annualized net charge-offs to average total loans and leases |
|
0.42 |
% |
|
|
0.49 |
% |
|
|
0.70 |
% |
|
|
0.47 |
% |
|
|
0.36 |
% |
|
|
0.46 |
% |
|
|
0.29 |
% |
Non-performing loans ("NPLs") to total loans and leases (1) |
|
0.20 |
% |
|
|
0.21 |
% |
|
|
0.19 |
% |
|
|
0.18 |
% |
|
|
0.18 |
% |
|
|
0.20 |
% |
|
|
0.18 |
% |
Reserves to NPLs (1) |
|
494.46 |
% |
|
|
405.56 |
% |
|
|
425.95 |
% |
|
|
466.34 |
% |
|
|
557.76 |
% |
|
|
494.46 |
% |
|
|
557.76 |
% |
Non-performing assets ("NPAs") to total assets |
|
0.13 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.14 |
% |
|
|
0.14 |
% |
|
|
0.13 |
% |
|
|
0.14 |
% |
Customers Bank Capital Ratios (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Common equity Tier 1 capital to risk-weighted assets |
|
11.9 |
% |
|
|
11.31 |
% |
|
|
11.21 |
% |
|
|
11.42 |
% |
|
|
11.46 |
% |
|
|
11.9 |
% |
|
|
11.46 |
% |
Tier 1 capital to risk-weighted assets |
|
11.9 |
% |
|
|
11.31 |
% |
|
|
11.21 |
% |
|
|
11.42 |
% |
|
|
11.46 |
% |
|
|
11.9 |
% |
|
|
11.46 |
% |
Total capital to risk-weighted assets |
|
13.3 |
% |
|
|
12.64 |
% |
|
|
12.40 |
% |
|
|
12.65 |
% |
|
|
12.91 |
% |
|
|
13.3 |
% |
|
|
12.91 |
% |
Tier 1 capital to average assets (leverage ratio) |
|
8.0 |
% |
|
|
8.09 |
% |
|
|
8.15 |
% |
|
|
8.10 |
% |
|
|
8.09 |
% |
|
|
8.0 |
% |
|
|
8.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(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 Q2 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) |
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|||||||||||||||
|
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
June 30, |
|||||||||||||||
|
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
|||||||||||||
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loans and leases |
$ |
241,745 |
|
|
$ |
244,212 |
|
$ |
217,471 |
|
|
$ |
200,438 |
|
|
$ |
168,920 |
|
|
$ |
485,957 |
|
|
$ |
326,040 |
|
Investment securities |
|
48,026 |
|
|
|
47,316 |
|
|
42,953 |
|
|
|
30,546 |
|
|
|
25,442 |
|
|
|
95,342 |
|
|
|
45,737 |
|
Loans held for sale |
|
11,149 |
|
|
|
11,701 |
|
|
1,269 |
|
|
|
19 |
|
|
|
21 |
|
|
|
22,850 |
|
|
|
76 |
|
Interest earning deposits |
|
27,624 |
|
|
|
10,395 |
|
|
6,754 |
|
|
|
2,949 |
|
|
|
919 |
|
|
|
38,019 |
|
|
|
1,248 |
|
Other |
|
1,616 |
|
|
|
1,321 |
|
|
1,200 |
|
|
|
1,964 |
|
|
|
1,032 |
|
|
|
2,937 |
|
|
|
6,709 |
|
Total interest income |
|
330,160 |
|
|
|
314,945 |
|
|
269,647 |
|
|
|
235,916 |
|
|
|
196,334 |
|
|
|
645,105 |
|
|
|
379,810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Deposits |
|
136,375 |
|
|
|
143,930 |
|
|
124,366 |
|
|
|
65,380 |
|
|
|
22,781 |
|
|
|
280,305 |
|
|
|
36,493 |
|
FHLB advances |
|
24,285 |
|
|
|
10,370 |
|
|
4,464 |
|
|
|
4,684 |
|
|
|
2,316 |
|
|
|
34,655 |
|
|
|
2,316 |
|
FRB advances |
|
— |
|
|
|
6,286 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,286 |
|
|
|
— |
|
Subordinated debt |
|
2,689 |
|
|
|
2,689 |
|
|
2,688 |
|
|
|
2,689 |
|
|
|
2,689 |
|
|
|
5,378 |
|
|
|
5,378 |
|
Other borrowings |
|
1,540 |
|
|
|
1,771 |
|
|
2,992 |
|
|
|
4,131 |
|
|
|
3,696 |
|
|
|
3,311 |
|
|
|
6,072 |
|
Total interest expense |
|
164,889 |
|
|
|
165,046 |
|
|
134,510 |
|
|
|
76,884 |
|
|
|
31,482 |
|
|
|
329,935 |
|
|
|
50,259 |
|
Net interest income |
|
165,271 |
|
|
|
149,899 |
|
|
135,137 |
|
|
|
159,032 |
|
|
|
164,852 |
|
|
|
315,170 |
|
|
|
329,551 |
|
Provision (benefit) for credit losses |
|
23,629 |
|
|
|
19,603 |
|
|
28,216 |
|
|
|
(7,994 |
) |
|
|
23,847 |
|
|
|
43,232 |
|
|
|
39,844 |
|
Net interest income after provision (benefit) for credit losses |
|
141,642 |
|
|
|
130,296 |
|
|
106,921 |
|
|
|
167,026 |
|
|
|
141,005 |
|
|
|
271,938 |
|
|
|
289,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial lease income |
|
8,917 |
|
|
|
9,326 |
|
|
8,135 |
|
|
|
7,097 |
|
|
|
6,592 |
|
|
|
18,243 |
|
|
|
12,487 |
|
Loan fees |
|
4,271 |
|
|
|
3,990 |
|
|
4,017 |
|
|
|
3,008 |
|
|
|
2,618 |
|
|
|
8,261 |
|
|
|
5,163 |
|
Bank-owned life insurance |
|
4,997 |
|
|
|
2,647 |
|
|
1,975 |
|
|
|
3,449 |
|
|
|
1,947 |
|
|
|
7,644 |
|
|
|
10,273 |
|
Mortgage warehouse transactional fees |
|
1,376 |
|
|
|
1,074 |
|
|
1,295 |
|
|
|
1,545 |
|
|
|
1,883 |
|
|
|
2,450 |
|
|
|
3,898 |
|
Gain (loss) on sale of SBA and other loans |
|
(761 |
) |
|
|
— |
|
|
— |
|
|
|
106 |
|
|
|
1,542 |
|
|
|
(761 |
) |
|
|
3,049 |
|
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 |
|
— |
|
|
|
— |
|
|
(16,937 |
) |
|
|
(2,135 |
) |
|
|
(3,029 |
) |
|
|
— |
|
|
|
(4,092 |
) |
Legal settlement gain |
|
— |
|
|
|
— |
|
|
7,519 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other |
|
2,234 |
|
|
|
1,084 |
|
|
1,341 |
|
|
|
1,378 |
|
|
|
1,193 |
|
|
|
3,318 |
|
|
|
3,166 |
|
Total non-interest income |
|
15,997 |
|
|
|
18,121 |
|
|
7,345 |
|
|
|
(9,017 |
) |
|
|
12,746 |
|
|
|
34,118 |
|
|
|
33,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Salaries and employee benefits |
|
33,120 |
|
|
|
32,345 |
|
|
29,194 |
|
|
|
31,230 |
|
|
|
25,334 |
|
|
|
65,465 |
|
|
|
51,941 |
|
Technology, communication and bank operations |
|
16,407 |
|
|
|
16,589 |
|
|
18,604 |
|
|
|
19,588 |
|
|
|
22,738 |
|
|
|
32,996 |
|
|
|
46,806 |
|
Commercial lease depreciation |
|
7,328 |
|
|
|
7,875 |
|
|
6,518 |
|
|
|
5,966 |
|
|
|
5,552 |
|
|
|
15,203 |
|
|
|
10,494 |
|
Professional services |
|
9,192 |
|
|
|
7,596 |
|
|
6,825 |
|
|
|
6,269 |
|
|
|
7,415 |
|
|
|
16,788 |
|
|
|
14,371 |
|
Loan servicing |
|
4,777 |
|
|
|
4,661 |
|
|
4,460 |
|
|
|
3,851 |
|
|
|
4,341 |
|
|
|
9,438 |
|
|
|
6,712 |
|
Occupancy |
|
2,519 |
|
|
|
2,760 |
|
|
3,672 |
|
|
|
2,605 |
|
|
|
4,279 |
|
|
|
5,279 |
|
|
|
7,329 |
|
FDIC assessments, non-income taxes and regulatory fees |
|
9,780 |
|
|
|
2,728 |
|
|
2,339 |
|
|
|
2,528 |
|
|
|
1,619 |
|
|
|
12,508 |
|
|
|
4,002 |
|
Advertising and promotion |
|
546 |
|
|
|
1,049 |
|
|
1,111 |
|
|
|
762 |
|
|
|
353 |
|
|
|
1,595 |
|
|
|
668 |
|
Other |
|
5,628 |
|
|
|
4,530 |
|
|
5,696 |
|
|
|
3,399 |
|
|
|
4,574 |
|
|
|
10,158 |
|
|
|
7,689 |
|
Total non-interest expense |
|
89,297 |
|
|
|
80,133 |
|
|
78,419 |
|
|
|
76,198 |
|
|
|
76,205 |
|
|
|
169,430 |
|
|
|
150,012 |
|
Income before income tax expense |
|
68,342 |
|
|
|
68,284 |
|
|
35,847 |
|
|
|
81,811 |
|
|
|
77,546 |
|
|
|
136,626 |
|
|
|
173,639 |
|
Income tax expense |
|
20,768 |
|
|
|
14,563 |
|
|
7,136 |
|
|
|
17,899 |
|
|
|
18,896 |
|
|
|
35,331 |
|
|
|
38,228 |
|
Net income |
|
47,574 |
|
|
|
53,721 |
|
|
28,711 |
|
|
|
63,912 |
|
|
|
58,650 |
|
|
|
101,295 |
|
|
|
135,411 |
|
Preferred stock dividends |
|
3,567 |
|
|
|
3,456 |
|
|
3,088 |
|
|
|
2,548 |
|
|
|
2,131 |
|
|
|
7,023 |
|
|
|
3,996 |
|
Net income available to common shareholders |
$ |
44,007 |
|
|
$ |
50,265 |
|
$ |
25,623 |
|
|
$ |
61,364 |
|
|
$ |
56,519 |
|
|
$ |
94,272 |
|
|
$ |
131,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Basic earnings per common share |
$ |
1.41 |
|
|
$ |
1.58 |
|
$ |
0.79 |
|
|
$ |
1.89 |
|
|
$ |
1.73 |
|
|
$ |
2.99 |
|
|
$ |
4.00 |
|
Diluted earnings per common share |
|
1.39 |
|
|
|
1.55 |
|
|
0.77 |
|
|
|
1.85 |
|
|
|
1.68 |
|
|
|
2.95 |
|
|
|
3.87 |
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||
CONSOLIDATED BALANCE SHEET - UNAUDITED |
|||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|||||||||||
|
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks |
$ |
54,127 |
|
|
$ |
77,251 |
|
|
$ |
58,025 |
|
|
$ |
41,520 |
|
|
$ |
66,703 |
|
Interest earning deposits |
|
3,101,097 |
|
|
|
1,969,434 |
|
|
|
397,781 |
|
|
|
362,945 |
|
|
|
178,475 |
|
Cash and cash equivalents |
|
3,155,224 |
|
|
|
2,046,685 |
|
|
|
455,806 |
|
|
|
404,465 |
|
|
|
245,178 |
|
Investment securities, at fair value |
|
2,824,638 |
|
|
|
2,926,969 |
|
|
|
2,987,500 |
|
|
|
2,943,694 |
|
|
|
3,144,882 |
|
Investment securities held to maturity |
|
1,258,560 |
|
|
|
870,294 |
|
|
|
840,259 |
|
|
|
886,294 |
|
|
|
495,039 |
|
Loans held for sale |
|
78,108 |
|
|
|
424,057 |
|
|
|
328,312 |
|
|
|
5,224 |
|
|
|
6,595 |
|
Loans receivable, mortgage warehouse, at fair value |
|
1,006,268 |
|
|
|
1,247,367 |
|
|
|
1,323,312 |
|
|
|
1,569,090 |
|
|
|
1,874,603 |
|
Loans receivable, PPP |
|
188,763 |
|
|
|
246,258 |
|
|
|
998,153 |
|
|
|
1,154,632 |
|
|
|
1,570,160 |
|
Loans and leases receivable |
|
12,637,768 |
|
|
|
13,145,352 |
|
|
|
13,144,894 |
|
|
|
12,607,742 |
|
|
|
12,212,995 |
|
Allowance for credit losses on loans and leases |
|
(139,656 |
) |
|
|
(130,281 |
) |
|
|
(130,924 |
) |
|
|
(130,197 |
) |
|
|
(156,530 |
) |
Total loans and leases receivable, net of allowance for credit losses on loans and leases |
|
13,693,143 |
|
|
|
14,508,696 |
|
|
|
15,335,435 |
|
|
|
15,201,267 |
|
|
|
15,501,228 |
|
FHLB, Federal Reserve Bank, and other restricted stock |
|
126,240 |
|
|
|
124,733 |
|
|
|
74,196 |
|
|
|
64,112 |
|
|
|
74,626 |
|
Accrued interest receivable |
|
119,501 |
|
|
|
123,754 |
|
|
|
123,374 |
|
|
|
107,621 |
|
|
|
98,727 |
|
Bank premises and equipment, net |
|
8,031 |
|
|
|
8,581 |
|
|
|
9,025 |
|
|
|
6,610 |
|
|
|
6,755 |
|
Bank-owned life insurance |
|
290,322 |
|
|
|
339,607 |
|
|
|
338,441 |
|
|
|
336,130 |
|
|
|
335,153 |
|
Goodwill and other intangibles |
|
3,629 |
|
|
|
3,629 |
|
|
|
3,629 |
|
|
|
3,629 |
|
|
|
3,629 |
|
Other assets |
|
471,169 |
|
|
|
374,609 |
|
|
|
400,135 |
|
|
|
408,575 |
|
|
|
340,184 |
|
Total assets |
$ |
22,028,565 |
|
|
$ |
21,751,614 |
|
|
$ |
20,896,112 |
|
|
$ |
20,367,621 |
|
|
$ |
20,251,996 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
Demand, non-interest bearing deposits |
$ |
4,490,198 |
|
|
$ |
3,487,517 |
|
|
$ |
1,885,045 |
|
|
$ |
2,993,793 |
|
|
$ |
4,683,030 |
|
Interest bearing deposits |
|
13,460,233 |
|
|
|
14,236,100 |
|
|
|
16,271,908 |
|
|
|
14,528,645 |
|
|
|
12,261,689 |
|
Total deposits |
|
17,950,431 |
|
|
|
17,723,617 |
|
|
|
18,156,953 |
|
|
|
17,522,438 |
|
|
|
16,944,719 |
|
Federal funds purchased |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
365,000 |
|
|
|
770,000 |
|
FHLB advances |
|
2,046,142 |
|
|
|
2,052,143 |
|
|
|
800,000 |
|
|
|
500,000 |
|
|
|
635,000 |
|
Other borrowings |
|
123,710 |
|
|
|
123,645 |
|
|
|
123,580 |
|
|
|
123,515 |
|
|
|
123,450 |
|
Subordinated debt |
|
182,091 |
|
|
|
182,021 |
|
|
|
181,952 |
|
|
|
181,882 |
|
|
|
181,812 |
|
Accrued interest payable and other liabilities |
|
269,539 |
|
|
|
249,168 |
|
|
|
230,666 |
|
|
|
287,855 |
|
|
|
243,625 |
|
Total liabilities |
|
20,571,913 |
|
|
|
20,330,594 |
|
|
|
19,493,151 |
|
|
|
18,980,690 |
|
|
|
18,898,606 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock |
|
137,794 |
|
|
|
137,794 |
|
|
|
137,794 |
|
|
|
137,794 |
|
|
|
137,794 |
|
Common stock |
|
35,301 |
|
|
|
35,258 |
|
|
|
35,012 |
|
|
|
34,948 |
|
|
|
34,922 |
|
Additional paid in capital |
|
555,737 |
|
|
|
552,255 |
|
|
|
551,721 |
|
|
|
549,066 |
|
|
|
545,670 |
|
Retained earnings |
|
1,018,406 |
|
|
|
974,399 |
|
|
|
924,134 |
|
|
|
898,511 |
|
|
|
837,147 |
|
Accumulated other comprehensive income (loss), net |
|
(168,176 |
) |
|
|
(156,276 |
) |
|
|
(163,096 |
) |
|
|
(156,126 |
) |
|
|
(124,881 |
) |
Treasury stock, at cost |
|
(122,410 |
) |
|
|
(122,410 |
) |
|
|
(82,604 |
) |
|
|
(77,262 |
) |
|
|
(77,262 |
) |
Total shareholders' equity |
|
1,456,652 |
|
|
|
1,421,020 |
|
|
|
1,402,961 |
|
|
|
1,386,931 |
|
|
|
1,353,390 |
|
Total liabilities and shareholders' equity |
$ |
22,028,565 |
|
|
$ |
21,751,614 |
|
|
$ |
20,896,112 |
|
|
$ |
20,367,621 |
|
|
$ |
20,251,996 |
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||||
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED |
||||||||||||||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|||||||||||||||||||||||||
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|||||||||||||||||||||
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
|||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest earning deposits |
$ |
2,150,154 |
|
$ |
27,624 |
|
5.15 |
% |
|
$ |
914,149 |
|
$ |
10,395 |
|
4.61 |
% |
|
$ |
434,950 |
|
$ |
919 |
|
0.85 |
% |
Investment securities (1) |
|
3,949,732 |
|
|
48,026 |
|
4.86 |
% |
|
|
4,031,247 |
|
|
47,316 |
|
4.69 |
% |
|
|
4,104,463 |
|
|
25,442 |
|
2.48 |
% |
Loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial & industrial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Specialty lending loans and leases (2) |
|
5,832,485 |
|
|
121,779 |
|
8.37 |
% |
|
|
5,694,168 |
|
|
103,688 |
|
7.38 |
% |
|
|
4,068,175 |
|
|
39,160 |
|
3.86 |
% |
Other commercial & industrial loans (2) |
|
1,672,668 |
|
|
26,028 |
|
6.24 |
% |
|
|
1,705,205 |
|
|
25,570 |
|
6.08 |
% |
|
|
1,509,655 |
|
|
14,706 |
|
3.91 |
% |
Commercial loans to mortgage companies |
|
1,300,496 |
|
|
19,606 |
|
6.05 |
% |
|
|
1,262,139 |
|
|
17,412 |
|
5.59 |
% |
|
|
1,898,554 |
|
|
15,615 |
|
3.30 |
% |
Multifamily loans |
|
2,181,617 |
|
|
21,095 |
|
3.88 |
% |
|
|
2,206,600 |
|
|
20,470 |
|
3.76 |
% |
|
|
1,845,527 |
|
|
17,313 |
|
3.76 |
% |
Loans receivable, PPP |
|
207,127 |
|
|
1,633 |
|
3.16 |
% |
|
|
889,235 |
|
|
23,551 |
|
10.74 |
% |
|
|
1,863,429 |
|
|
20,572 |
|
4.43 |
% |
Non-owner occupied commercial real estate loans |
|
1,428,086 |
|
|
19,877 |
|
5.58 |
% |
|
|
1,449,722 |
|
|
20,199 |
|
5.65 |
% |
|
|
1,307,995 |
|
|
12,749 |
|
3.91 |
% |
Residential mortgages |
|
535,739 |
|
|
5,735 |
|
4.28 |
% |
|
|
542,909 |
|
|
5,598 |
|
4.18 |
% |
|
|
515,612 |
|
|
4,898 |
|
3.81 |
% |
Installment loans |
|
1,684,215 |
|
|
37,141 |
|
8.84 |
% |
|
|
1,727,995 |
|
|
39,425 |
|
9.25 |
% |
|
|
1,909,551 |
|
|
43,928 |
|
9.23 |
% |
Total loans and leases (3) |
|
14,842,432 |
|
|
252,894 |
|
6.83 |
% |
|
|
15,477,973 |
|
|
255,913 |
|
6.70 |
% |
|
|
14,918,498 |
|
|
168,941 |
|
4.54 |
% |
Other interest-earning assets |
|
131,362 |
|
|
1,616 |
|
4.93 |
% |
|
|
91,308 |
|
|
1,321 |
|
5.87 |
% |
|
|
68,025 |
|
|
1,032 |
|
6.09 |
% |
Total interest-earning assets |
|
21,073,680 |
|
|
330,160 |
|
6.28 |
% |
|
|
20,514,677 |
|
|
314,945 |
|
6.21 |
% |
|
|
19,525,936 |
|
|
196,334 |
|
4.03 |
% |
Non-interest-earning assets |
|
581,055 |
|
|
|
|
|
|
538,243 |
|
|
|
|
|
|
530,084 |
|
|
|
|
||||||
Total assets |
$ |
21,654,735 |
|
|
|
|
|
$ |
21,052,920 |
|
|
|
|
|
$ |
20,056,020 |
|
|
|
|
||||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest checking accounts |
$ |
5,309,775 |
|
$ |
49,862 |
|
3.77 |
% |
|
$ |
7,494,379 |
|
$ |
70,485 |
|
3.81 |
% |
|
$ |
6,409,617 |
|
$ |
13,644 |
|
0.85 |
% |
Money market deposit accounts |
|
1,978,546 |
|
|
19,678 |
|
3.99 |
% |
|
|
2,470,004 |
|
|
20,783 |
|
3.41 |
% |
|
|
4,704,767 |
|
|
7,523 |
|
0.64 |
% |
Other savings accounts |
|
997,205 |
|
|
9,839 |
|
3.96 |
% |
|
|
822,312 |
|
|
6,286 |
|
3.10 |
% |
|
|
695,176 |
|
|
758 |
|
0.44 |
% |
Certificates of deposit |
|
5,020,205 |
|
|
56,996 |
|
4.55 |
% |
|
|
4,504,333 |
|
|
46,376 |
|
4.18 |
% |
|
|
530,180 |
|
|
856 |
|
0.65 |
% |
Total interest-bearing deposits (4) |
|
13,305,731 |
|
|
136,375 |
|
4.11 |
% |
|
|
15,291,028 |
|
|
143,930 |
|
3.82 |
% |
|
|
12,339,740 |
|
|
22,781 |
|
0.74 |
% |
Federal funds purchased |
|
— |
|
|
— |
|
— |
% |
|
|
15,333 |
|
|
188 |
|
4.97 |
% |
|
|
642,747 |
|
|
1,429 |
|
0.89 |
% |
Borrowings |
|
2,357,981 |
|
|
28,514 |
|
4.85 |
% |
|
|
1,788,116 |
|
|
20,928 |
|
4.75 |
% |
|
|
940,068 |
|
|
7,272 |
|
3.10 |
% |
Total interest-bearing liabilities |
|
15,663,712 |
|
|
164,889 |
|
4.22 |
% |
|
|
17,094,477 |
|
|
165,046 |
|
3.91 |
% |
|
|
13,922,555 |
|
|
31,482 |
|
0.91 |
% |
Non-interest-bearing deposits (4) |
|
4,258,711 |
|
|
|
|
|
|
2,299,295 |
|
|
|
|
|
|
4,491,574 |
|
|
|
|
||||||
Total deposits and borrowings |
|
19,922,423 |
|
|
|
3.32 |
% |
|
|
19,393,772 |
|
|
|
3.45 |
% |
|
|
18,414,129 |
|
|
|
0.69 |
% |
|||
Other non-interest-bearing liabilities |
|
259,111 |
|
|
|
|
|
|
247,575 |
|
|
|
|
|
|
259,279 |
|
|
|
|
||||||
Total liabilities |
|
20,181,534 |
|
|
|
|
|
|
19,641,347 |
|
|
|
|
|
|
18,673,408 |
|
|
|
|
||||||
Shareholders' equity |
|
1,473,201 |
|
|
|
|
|
|
1,411,573 |
|
|
|
|
|
|
1,382,612 |
|
|
|
|
||||||
Total liabilities and shareholders' equity |
$ |
21,654,735 |
|
|
|
|
|
$ |
21,052,920 |
|
|
|
|
|
$ |
20,056,020 |
|
|
|
|
||||||
Net interest income |
|
|
|
165,271 |
|
|
|
|
|
|
149,899 |
|
|
|
|
|
|
164,852 |
|
|
||||||
Tax-equivalent adjustment |
|
|
|
390 |
|
|
|
|
|
|
375 |
|
|
|
|
|
|
270 |
|
|
||||||
Net interest earnings |
|
|
$ |
165,661 |
|
|
|
|
|
$ |
150,274 |
|
|
|
|
|
$ |
165,122 |
|
|
||||||
Interest spread |
|
|
|
|
2.96 |
% |
|
|
|
|
|
2.76 |
% |
|
|
|
|
|
3.35 |
% |
||||||
Net interest margin |
|
|
|
|
3.14 |
% |
|
|
|
|
|
2.95 |
% |
|
|
|
|
|
3.38 |
% |
||||||
Net interest margin tax equivalent |
|
|
|
|
3.15 |
% |
|
|
|
|
|
2.96 |
% |
|
|
|
|
|
3.39 |
% |
||||||
Net interest margin tax equivalent excl. PPP (5) |
|
|
|
|
3.20 |
% |
|
|
|
|
|
2.80 |
% |
|
|
|
|
|
3.32 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(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) |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended |
||||||||||||||||
|
June 30, 2023 |
|
June 30, 2022 |
||||||||||||||
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest earning deposits |
$ |
1,535,566 |
|
$ |
38,019 |
|
4.99 |
% |
|
$ |
629,514 |
|
$ |
1,248 |
|
0.40 |
% |
Investment securities (1) |
|
3,990,265 |
|
|
95,342 |
|
4.78 |
% |
|
|
4,070,901 |
|
|
45,737 |
|
2.25 |
% |
Loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & industrial: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Specialty lending loans and leases (2) |
|
5,763,708 |
|
|
225,467 |
|
7.89 |
% |
|
|
3,403,276 |
|
|
62,551 |
|
3.71 |
% |
Other commercial & industrial loans (2) |
|
1,688,847 |
|
|
51,598 |
|
6.16 |
% |
|
|
1,451,858 |
|
|
27,974 |
|
3.89 |
% |
Commercial loans to mortgage companies |
|
1,281,424 |
|
|
37,018 |
|
5.83 |
% |
|
|
1,867,772 |
|
|
29,620 |
|
3.20 |
% |
Multifamily loans |
|
2,194,039 |
|
|
41,565 |
|
3.82 |
% |
|
|
1,689,553 |
|
|
31,079 |
|
3.71 |
% |
Loans receivable, PPP |
|
546,297 |
|
|
25,184 |
|
9.30 |
% |
|
|
2,250,224 |
|
|
57,466 |
|
5.15 |
% |
Non-owner occupied commercial real estate loans |
|
1,438,844 |
|
|
40,076 |
|
5.62 |
% |
|
|
1,310,091 |
|
|
24,956 |
|
3.84 |
% |
Residential mortgages |
|
539,304 |
|
|
11,333 |
|
4.24 |
% |
|
|
466,288 |
|
|
8,578 |
|
3.71 |
% |
Installment loans |
|
1,705,984 |
|
|
76,566 |
|
9.05 |
% |
|
|
1,852,167 |
|
|
83,892 |
|
9.13 |
% |
Total loans and leases (3) |
|
15,158,447 |
|
|
508,807 |
|
6.77 |
% |
|
|
14,291,229 |
|
|
326,116 |
|
4.60 |
% |
Other interest-earning assets |
|
111,446 |
|
|
2,937 |
|
5.32 |
% |
|
|
60,113 |
|
|
6,709 |
|
NM (6) |
|
Total interest-earning assets |
|
20,795,724 |
|
|
645,105 |
|
6.25 |
% |
|
|
19,051,757 |
|
|
379,810 |
|
4.02 |
% |
Non-interest-earning assets |
|
559,766 |
|
|
|
|
|
|
543,479 |
|
|
|
|
||||
Total assets |
$ |
21,355,490 |
|
|
|
|
|
$ |
19,595,236 |
|
|
|
|
||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest checking accounts |
$ |
6,396,042 |
|
$ |
120,347 |
|
3.79 |
% |
|
$ |
6,091,263 |
|
$ |
21,374 |
|
0.71 |
% |
Money market deposit accounts |
|
2,222,917 |
|
|
40,461 |
|
3.67 |
% |
|
|
4,791,925 |
|
|
12,197 |
|
0.51 |
% |
Other savings accounts |
|
910,241 |
|
|
16,125 |
|
3.57 |
% |
|
|
787,134 |
|
|
1,542 |
|
0.39 |
% |
Certificates of deposit |
|
4,763,694 |
|
|
103,372 |
|
4.38 |
% |
|
|
490,632 |
|
|
1,380 |
|
0.57 |
% |
Total interest-bearing deposits (4) |
|
14,292,894 |
|
|
280,305 |
|
3.95 |
% |
|
|
12,160,954 |
|
|
36,493 |
|
0.61 |
% |
Federal funds purchased |
|
7,624 |
|
|
188 |
|
4.97 |
% |
|
|
367,210 |
|
|
1,502 |
|
0.82 |
% |
Borrowings |
|
2,074,623 |
|
|
49,442 |
|
4.81 |
% |
|
|
737,464 |
|
|
12,264 |
|
3.35 |
% |
Total interest-bearing liabilities |
|
16,375,141 |
|
|
329,935 |
|
4.06 |
% |
|
|
13,265,628 |
|
|
50,259 |
|
0.76 |
% |
Non-interest-bearing deposits (4) |
|
3,284,416 |
|
|
|
|
|
|
4,695,148 |
|
|
|
|
||||
Total deposits and borrowings |
|
19,659,557 |
|
|
|
3.38 |
% |
|
|
17,960,776 |
|
|
|
0.56 |
% |
||
Other non-interest-bearing liabilities |
|
253,376 |
|
|
|
|
|
|
248,266 |
|
|
|
|
||||
Total liabilities |
|
19,912,933 |
|
|
|
|
|
|
18,209,042 |
|
|
|
|
||||
Shareholders' equity |
|
1,442,557 |
|
|
|
|
|
|
1,386,194 |
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
21,355,490 |
|
|
|
|
|
$ |
19,595,236 |
|
|
|
|
||||
Net interest income |
|
|
|
315,170 |
|
|
|
|
|
|
329,551 |
|
|
||||
Tax-equivalent adjustment |
|
|
|
765 |
|
|
|
|
|
|
509 |
|
|
||||
Net interest earnings |
|
|
$ |
315,935 |
|
|
|
|
|
$ |
330,060 |
|
|
||||
Interest spread |
|
|
|
|
2.86 |
% |
|
|
|
|
|
3.45 |
% |
||||
Net interest margin |
|
|
|
|
3.05 |
% |
|
|
|
|
|
3.48 |
% |
||||
Net interest margin tax equivalent |
|
|
|
|
3.06 |
% |
|
|
|
|
|
3.49 |
% |
||||
Net interest margin tax equivalent excl. PPP (5) |
|
|
|
|
3.01 |
% |
|
|
|
|
|
3.32 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(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) |
|
|
|
|
|
|
|
|
|
|||||
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|||||
|
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|||||
Loans and leases held for investment |
|
|
|
|
|
|
|
|
|
|||||
Commercial: |
|
|
|
|
|
|
|
|
|
|||||
Commercial & industrial: |
|
|
|
|
|
|
|
|
|
|||||
Specialty lending |
$ |
5,534,832 |
|
$ |
5,519,176 |
|
$ |
5,412,887 |
|
$ |
5,103,974 |
|
$ |
4,599,640 |
Other commercial & industrial |
|
1,052,145 |
|
|
1,168,161 |
|
|
1,135,336 |
|
|
1,064,332 |
|
|
1,037,444 |
Multifamily |
|
2,151,734 |
|
|
2,195,211 |
|
|
2,213,019 |
|
|
2,263,268 |
|
|
2,008,784 |
Loans to mortgage companies |
|
1,108,598 |
|
|
1,374,894 |
|
|
1,447,919 |
|
|
1,708,587 |
|
|
1,975,189 |
Commercial real estate owner occupied |
|
842,042 |
|
|
895,314 |
|
|
885,339 |
|
|
726,670 |
|
|
710,577 |
Loans receivable, PPP |
|
188,763 |
|
|
246,258 |
|
|
998,153 |
|
|
1,154,632 |
|
|
1,570,160 |
Commercial real estate non-owner occupied |
|
1,211,091 |
|
|
1,245,248 |
|
|
1,290,730 |
|
|
1,263,211 |
|
|
1,152,869 |
Construction |
|
212,214 |
|
|
188,123 |
|
|
162,009 |
|
|
136,133 |
|
|
195,687 |
Total commercial loans and leases |
|
12,301,419 |
|
|
12,832,385 |
|
|
13,545,392 |
|
|
13,420,807 |
|
|
13,250,350 |
Consumer: |
|
|
|
|
|
|
|
|
|
|||||
Residential |
|
487,199 |
|
|
494,815 |
|
|
497,952 |
|
|
465,772 |
|
|
457,768 |
Manufactured housing |
|
41,664 |
|
|
43,272 |
|
|
45,076 |
|
|
46,990 |
|
|
48,570 |
Installment: |
|
|
|
|
|
|
|
|
|
|||||
Personal |
|
752,470 |
|
|
849,420 |
|
|
964,641 |
|
|
1,056,432 |
|
|
1,613,628 |
Other |
|
250,047 |
|
|
419,085 |
|
|
413,298 |
|
|
341,463 |
|
|
287,442 |
Total installment loans |
|
1,002,517 |
|
|
1,268,505 |
|
|
1,377,939 |
|
|
1,397,895 |
|
|
1,901,070 |
Total consumer loans |
|
1,531,380 |
|
|
1,806,592 |
|
|
1,920,967 |
|
|
1,910,657 |
|
|
2,407,408 |
Total loans and leases held for investment |
$ |
13,832,799 |
|
$ |
14,638,977 |
|
$ |
15,466,359 |
|
$ |
15,331,464 |
|
$ |
15,657,758 |
|
|
|
|
|
|
|
|
|
|
|||||
Loans held for sale |
|
|
|
|
|
|
|
|
|
|||||
Commercial: |
|
|
|
|
|
|
|
|
|
|||||
Multifamily |
$ |
— |
|
$ |
4,051 |
|
$ |
4,079 |
|
$ |
4,108 |
|
$ |
4,136 |
Commercial real estate non-owner occupied |
|
— |
|
|
16,000 |
|
|
— |
|
|
— |
|
|
— |
Total commercial loans and leases |
|
— |
|
|
20,051 |
|
|
4,079 |
|
|
4,108 |
|
|
4,136 |
Consumer: |
|
|
|
|
|
|
|
|
|
|||||
Residential |
|
1,234 |
|
|
821 |
|
|
829 |
|
|
1,116 |
|
|
2,459 |
Installment: |
|
|
|
|
|
|
|
|
|
|||||
Personal |
|
76,874 |
|
|
307,336 |
|
|
133,801 |
|
|
— |
|
|
— |
Other |
|
— |
|
|
95,849 |
|
|
189,603 |
|
|
— |
|
|
— |
Total installment loans |
|
76,874 |
|
|
403,185 |
|
|
323,404 |
|
|
— |
|
|
— |
Total consumer loans |
|
78,108 |
|
|
404,006 |
|
|
324,233 |
|
|
1,116 |
|
|
2,459 |
Total loans held for sale |
$ |
78,108 |
|
$ |
424,057 |
|
$ |
328,312 |
|
$ |
5,224 |
|
$ |
6,595 |
|
|
|
|
|
|
|
|
|
|
|||||
Total loans and leases portfolio |
$ |
13,910,907 |
|
$ |
15,063,034 |
|
$ |
15,794,671 |
|
$ |
15,336,688 |
|
$ |
15,664,353 |
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||
PERIOD END DEPOSIT COMPOSITION - UNAUDITED |
||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|||||
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|||||
|
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|||||
|
|
|
|
|
|
|
|
|
|
|||||
Demand, non-interest bearing |
$ |
4,490,198 |
|
$ |
3,487,517 |
|
$ |
1,885,045 |
|
$ |
2,993,793 |
|
$ |
4,683,030 |
Demand, interest bearing |
|
5,551,037 |
|
|
5,791,302 |
|
|
8,476,027 |
|
|
7,124,663 |
|
|
6,644,398 |
Total demand deposits |
|
10,041,235 |
|
|
9,278,819 |
|
|
10,361,072 |
|
|
10,118,456 |
|
|
11,327,428 |
Savings |
|
1,048,229 |
|
|
924,359 |
|
|
811,798 |
|
|
592,002 |
|
|
640,062 |
Money market |
|
2,004,264 |
|
|
2,019,633 |
|
|
2,734,217 |
|
|
4,913,967 |
|
|
4,254,205 |
Time deposits |
|
4,856,703 |
|
|
5,500,806 |
|
|
4,249,866 |
|
|
1,898,013 |
|
|
723,024 |
Total deposits |
$ |
17,950,431 |
|
$ |
17,723,617 |
|
$ |
18,156,953 |
|
$ |
17,522,438 |
|
$ |
16,944,719 |
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|
||||||||||||||||||||||||||||||||||||||||||||
ASSET QUALITY - UNAUDITED |
|
||||||||||||||||||||||||||||||||||||||||||||
(Dollars in
|
As of June 30, 2023 |
|
As of March 31, 2023 |
|
As of June 30, 2022 |
|
|||||||||||||||||||||||||||||||||||||||
|
Total loans |
|
Non
|
|
Allowance
|
|
Total
|
|
Total
|
|
Total loans |
|
Non
|
|
Allowance
|
|
Total
|
|
Total
|
|
Total loans |
|
Non
|
|
Allowance
|
|
Total
|
|
Total
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Loan type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial & industrial, including specialty lending (1) |
$ |
6,689,307 |
|
$ |
4,441 |
|
$ |
29,092 |
|
0.07 |
% |
|
655.08 |
% |
|
$ |
6,814,864 |
|
$ |
3,886 |
|
$ |
20,050 |
|
0.06 |
% |
|
515.95 |
% |
|
$ |
5,737,670 |
|
$ |
4,061 |
|
$ |
11,081 |
|
0.07 |
% |
|
272.86 |
% |
|
Multifamily |
|
2,151,734 |
|
|
4,022 |
|
|
15,400 |
|
0.19 |
% |
|
382.89 |
% |
|
|
2,195,211 |
|
|
881 |
|
|
15,084 |
|
0.04 |
% |
|
1712.15 |
% |
|
|
2,008,784 |
|
|
1,153 |
|
|
9,765 |
|
0.06 |
% |
|
846.92 |
% |
|
Commercial real estate owner occupied |
|
842,042 |
|
|
3,304 |
|
|
10,215 |
|
0.39 |
% |
|
309.17 |
% |
|
|
895,314 |
|
|
3,621 |
|
|
8,472 |
|
0.40 |
% |
|
233.97 |
% |
|
|
710,577 |
|
|
2,913 |
|
|
4,745 |
|
0.41 |
% |
|
162.89 |
% |
|
Commercial real estate non-owner occupied |
|
1,211,091 |
|
|
— |
|
|
13,495 |
|
— |
% |
|
— |
% |
|
|
1,245,248 |
|
|
— |
|
|
11,032 |
|
— |
% |
|
— |
% |
|
|
1,152,869 |
|
|
— |
|
|
8,880 |
|
— |
% |
|
— |
% |
|
Construction |
|
212,214 |
|
|
— |
|
|
2,639 |
|
— |
% |
|
— |
% |
|
|
188,123 |
|
|
— |
|
|
2,336 |
|
— |
% |
|
— |
% |
|
|
195,687 |
|
|
— |
|
|
1,179 |
|
— |
% |
|
— |
% |
|
Total commercial loans and leases receivable |
|
11,106,388 |
|
|
11,767 |
|
|
70,841 |
|
0.11 |
% |
|
602.03 |
% |
|
|
11,338,760 |
|
|
8,388 |
|
|
56,974 |
|
0.07 |
% |
|
679.23 |
% |
|
|
9,805,587 |
|
|
8,127 |
|
|
35,650 |
|
0.08 |
% |
|
438.66 |
% |
|
Residential |
|
487,199 |
|
|
7,306 |
|
|
6,846 |
|
1.50 |
% |
|
93.70 |
% |
|
|
494,815 |
|
|
6,473 |
|
|
6,853 |
|
1.31 |
% |
|
105.87 |
% |
|
|
457,768 |
|
|
6,258 |
|
|
5,578 |
|
1.37 |
% |
|
89.13 |
% |
|
Manufactured housing |
|
41,664 |
|
|
2,634 |
|
|
4,338 |
|
6.32 |
% |
|
164.69 |
% |
|
|
43,272 |
|
|
2,568 |
|
|
4,339 |
|
5.93 |
% |
|
168.96 |
% |
|
|
48,570 |
|
|
3,071 |
|
|
4,080 |
|
6.32 |
% |
|
132.86 |
% |
|
Installment |
|
1,002,517 |
|
|
6,537 |
|
|
57,631 |
|
0.65 |
% |
|
881.61 |
% |
|
|
1,268,505 |
|
|
8,720 |
|
|
62,115 |
|
0.69 |
% |
|
712.33 |
% |
|
|
1,901,070 |
|
|
5,965 |
|
|
111,222 |
|
0.31 |
% |
|
1864.58 |
% |
|
Total consumer loans receivable |
|
1,531,380 |
|
|
16,477 |
|
|
68,815 |
|
1.08 |
% |
|
417.64 |
% |
|
|
1,806,592 |
|
|
17,761 |
|
|
73,307 |
|
0.98 |
% |
|
412.74 |
% |
|
|
2,407,408 |
|
|
15,294 |
|
|
120,880 |
|
0.64 |
% |
|
790.38 |
% |
|
Loans and leases receivable (1) |
|
12,637,768 |
|
|
28,244 |
|
|
139,656 |
|
0.22 |
% |
|
494.46 |
% |
|
|
13,145,352 |
|
|
26,149 |
|
|
130,281 |
|
0.20 |
% |
|
498.23 |
% |
|
|
12,212,995 |
|
|
23,421 |
|
|
156,530 |
|
0.19 |
% |
|
668.33 |
% |
|
Loans receivable, PPP |
|
188,763 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
|
246,258 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
|
1,570,160 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
Loans receivable, mortgage warehouse, at fair value |
|
1,006,268 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
|
1,247,367 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
|
1,874,603 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
Total loans held for sale |
|
78,108 |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
|
|
424,057 |
|
|
5,975 |
|
|
— |
|
1.41 |
% |
|
— |
% |
|
|
6,595 |
|
|
4,643 |
|
|
— |
|
70.40 |
% |
|
— |
% |
|
Total portfolio |
$ |
13,910,907 |
|
$ |
28,244 |
|
$ |
139,656 |
|
0.20 |
% |
|
494.46 |
% |
|
$ |
15,063,034 |
|
$ |
32,124 |
|
$ |
130,281 |
|
0.21 |
% |
|
405.56 |
% |
|
$ |
15,664,353 |
|
$ |
28,064 |
|
$ |
156,530 |
|
0.18 |
% |
|
557.76 |
% |
|
(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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
Six Months Ended
|
||||||||||||||||
|
2023 (1) |
|
2023 |
|
2022 (2) |
|
2022 |
|
2022 |
|
2023 |
|
2022 |
||||||||||||||
Loan type |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial & industrial, including specialty lending |
$ |
258 |
|
|
$ |
(71 |
) |
|
$ |
12,960 |
|
|
$ |
2,581 |
|
|
$ |
(416 |
) |
|
$ |
187 |
|
|
$ |
(475 |
) |
Multifamily |
|
1,448 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,990 |
|
|
|
1,448 |
|
|
|
1,653 |
|
Commercial real estate owner occupied |
|
(34 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(42 |
) |
|
|
(34 |
) |
|
|
(49 |
) |
Commercial real estate non-owner occupied |
|
266 |
|
|
|
4,234 |
|
|
|
972 |
|
|
|
4,831 |
|
|
|
159 |
|
|
|
4,500 |
|
|
|
151 |
|
Construction |
|
— |
|
|
|
(116 |
) |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
(103 |
) |
|
|
(116 |
) |
|
|
(216 |
) |
Residential |
|
24 |
|
|
|
(2 |
) |
|
|
7 |
|
|
|
(13 |
) |
|
|
(39 |
) |
|
|
22 |
|
|
|
(41 |
) |
Installment |
|
13,602 |
|
|
|
14,606 |
|
|
|
13,237 |
|
|
|
11,108 |
|
|
|
11,932 |
|
|
|
28,208 |
|
|
|
19,684 |
|
Total net charge-offs (recoveries) from loans held for investment |
$ |
15,564 |
|
|
$ |
18,651 |
|
|
$ |
27,164 |
|
|
$ |
18,497 |
|
|
$ |
13,481 |
|
|
$ |
34,215 |
|
|
$ |
20,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Excludes |
(2) |
Includes |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
||||||||||||||||||||||||||
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
|
2023 |
|
2022 |
||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) |
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
||||||||||||||||||||||
GAAP net income to common shareholders |
$ |
44,007 |
|
$ |
1.39 |
|
$ |
50,265 |
|
$ |
1.55 |
|
$ |
25,623 |
$ |
0.77 |
|
$ |
61,364 |
|
$ |
1.85 |
|
|
$ |
56,519 |
|
$ |
1.68 |
|
|
$ |
94,272 |
$ |
2.95 |
|
$ |
131,415 |
|
$ |
3.87 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Severance expense |
|
141 |
|
|
0.00 |
|
|
637 |
|
|
0.02 |
|
|
— |
|
— |
|
|
1,058 |
|
|
0.03 |
|
|
|
— |
|
|
— |
|
|
|
778 |
|
0.02 |
|
|
— |
|
|
— |
|
Impairments on fixed assets and leases |
|
12 |
|
|
0.00 |
|
|
86 |
|
|
0.00 |
|
|
— |
|
— |
|
|
126 |
|
|
0.00 |
|
|
|
705 |
|
|
0.02 |
|
|
|
98 |
|
0.00 |
|
|
925 |
|
|
0.03 |
|
Loss on sale of consumer installment loans |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
18,221 |
|
|
0.55 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
— |
|
|
— |
|
|
— |
|
Loss on sale of capital call lines of credit |
|
3,914 |
|
|
0.12 |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
3,914 |
|
0.12 |
|
|
— |
|
|
— |
|
(Gains) losses on investment securities |
|
49 |
|
|
0.00 |
|
|
(49 |
) |
|
0.00 |
|
|
13,543 |
|
0.41 |
|
|
1,859 |
|
|
0.06 |
|
|
|
2,494 |
|
|
0.07 |
|
|
|
0 |
|
0.00 |
|
|
3,524 |
|
|
0.10 |
|
Derivative credit valuation adjustment |
|
(101 |
) |
|
0.00 |
|
|
204 |
|
|
0.01 |
|
|
202 |
|
0.01 |
|
|
(358 |
) |
|
(0.01 |
) |
|
|
(351 |
) |
|
(0.01 |
) |
|
|
103 |
|
0.00 |
|
|
(1,087 |
) |
|
(0.03 |
) |
Tax on surrender of bank-owned life insurance policies |
|
4,141 |
|
|
0.13 |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
4,141 |
|
0.13 |
|
|
— |
|
|
— |
|
Core earnings |
$ |
52,163 |
|
$ |
1.65 |
|
$ |
51,143 |
|
$ |
1.58 |
|
$ |
39,368 |
$ |
1.19 |
|
$ |
82,270 |
|
$ |
2.48 |
|
|
$ |
59,367 |
|
$ |
1.77 |
|
|
$ |
103,306 |
$ |
3.22 |
|
$ |
134,777 |
|
$ |
3.97 |
|
Core Earnings, excluding PPP - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|||||||||||||||||||||||||||||
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
|
2023 |
|
2022 |
|||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) |
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|||||||||||||||||||||||||
GAAP net income to common shareholders |
$ |
44,007 |
|
$ |
1.39 |
|
|
$ |
50,265 |
|
$ |
1.55 |
|
$ |
25,623 |
|
$ |
0.77 |
|
|
$ |
61,364 |
|
$ |
1.85 |
|
|
$ |
56,519 |
|
$ |
1.68 |
|
|
$ |
94,272 |
$ |
2.95 |
|
$ |
131,415 |
|
$ |
3.87 |
|
Less: PPP net income (loss) (after tax) |
|
(2,068 |
) |
|
(0.07 |
) |
|
|
9,606 |
|
|
0.30 |
|
|
(5,956 |
) |
|
(0.18 |
) |
|
|
5,846 |
|
|
0.18 |
|
|
|
13,066 |
|
|
0.39 |
|
|
|
7,538 |
|
0.24 |
|
|
37,779 |
|
|
1.11 |
|
Net income to common shareholders, excluding PPP |
|
46,075 |
|
|
1.46 |
|
|
|
40,659 |
|
|
1.26 |
|
|
31,579 |
|
|
0.95 |
|
|
|
55,518 |
|
|
1.67 |
|
|
|
43,453 |
|
|
1.29 |
|
|
|
86,734 |
|
2.71 |
|
|
93,636 |
|
|
2.76 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Severance expense |
|
141 |
|
|
0.00 |
|
|
|
637 |
|
|
0.02 |
|
|
— |
|
|
— |
|
|
|
1,058 |
|
|
0.03 |
|
|
|
— |
|
|
— |
|
|
|
778 |
|
0.02 |
|
|
— |
|
|
— |
|
Impairments on fixed assets and leases |
|
12 |
|
|
0.00 |
|
|
|
86 |
|
|
0.00 |
|
|
— |
|
|
— |
|
|
|
126 |
|
|
0.00 |
|
|
|
705 |
|
|
0.02 |
|
|
|
98 |
|
0.00 |
|
|
925 |
|
|
0.03 |
|
Loss on sale of consumer installment loans |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
18,221 |
|
|
0.55 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
— |
|
|
— |
|
|
— |
|
Loss on sale of capital call lines of credit |
|
3,914 |
|
|
0.12 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
3,914 |
|
0.12 |
|
|
— |
|
|
— |
|
(Gains) losses on investment securities |
|
49 |
|
|
0.00 |
|
|
|
(49 |
) |
|
0.00 |
|
|
13,543 |
|
|
0.41 |
|
|
|
1,859 |
|
|
0.06 |
|
|
|
2,494 |
|
|
0.07 |
|
|
|
0 |
|
0.00 |
|
|
3,524 |
|
|
0.10 |
|
Derivative credit valuation adjustment |
|
(101 |
) |
|
0.00 |
|
|
|
204 |
|
|
0.01 |
|
|
202 |
|
|
0.01 |
|
|
|
(358 |
) |
|
(0.01 |
) |
|
|
(351 |
) |
|
(0.01 |
) |
|
|
103 |
|
0.00 |
|
|
(1,087 |
) |
|
(0.03 |
) |
Tax on surrender of bank-owned life insurance policies |
|
4,141 |
|
|
0.13 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
4,141 |
|
0.13 |
|
|
— |
|
|
— |
|
Core earnings, excluding PPP |
$ |
54,231 |
|
$ |
1.72 |
|
|
$ |
41,537 |
|
$ |
1.28 |
|
$ |
45,324 |
|
$ |
1.37 |
|
|
$ |
76,424 |
|
$ |
2.30 |
|
|
$ |
46,301 |
|
$ |
1.38 |
|
|
$ |
95,768 |
$ |
2.99 |
|
$ |
96,998 |
|
$ |
2.86 |
|
Core Return on Average Assets - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
||||||||||||||||
(Dollars in thousands, except per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
|
2023 |
|
2022 |
||||||||||||||
GAAP net income |
$ |
47,574 |
|
|
$ |
53,721 |
|
|
$ |
28,711 |
|
|
$ |
63,912 |
|
|
$ |
58,650 |
|
|
$ |
101,295 |
|
|
$ |
135,411 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Severance expense |
|
141 |
|
|
|
637 |
|
|
|
— |
|
|
|
1,058 |
|
|
|
— |
|
|
|
778 |
|
|
|
— |
|
Impairments on fixed assets and leases |
|
12 |
|
|
|
86 |
|
|
|
— |
|
|
|
126 |
|
|
|
705 |
|
|
|
98 |
|
|
|
925 |
|
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 |
|
49 |
|
|
|
(49 |
) |
|
|
13,543 |
|
|
|
1,859 |
|
|
|
2,494 |
|
|
|
0 |
|
|
|
3,524 |
|
Derivative credit valuation adjustment |
|
(101 |
) |
|
|
204 |
|
|
|
202 |
|
|
|
(358 |
) |
|
|
(351 |
) |
|
|
103 |
|
|
|
(1,087 |
) |
Tax on surrender of bank-owned life insurance policies |
|
4,141 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,141 |
|
|
|
— |
|
Core net income |
$ |
55,730 |
|
|
$ |
54,599 |
|
|
$ |
42,456 |
|
|
$ |
84,818 |
|
|
$ |
61,498 |
|
|
$ |
110,329 |
|
|
$ |
138,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average total assets |
$ |
21,654,735 |
|
|
$ |
21,052,920 |
|
|
$ |
20,717,362 |
|
|
$ |
20,514,366 |
|
|
$ |
20,056,020 |
|
|
$ |
21,355,490 |
|
|
$ |
19,595,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Core return on average assets |
|
1.03 |
% |
|
|
1.05 |
% |
|
|
0.81 |
% |
|
|
1.64 |
% |
|
|
1.23 |
% |
|
|
1.04 |
% |
|
|
1.43 |
% |
Core Return on Average Assets, excluding PPP - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
||||||||||||||||
(Dollars in thousands, except per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
|
2023 |
|
2022 |
||||||||||||||
GAAP net income |
$ |
47,574 |
|
|
$ |
53,721 |
|
|
$ |
28,711 |
|
|
$ |
63,912 |
|
|
$ |
58,650 |
|
|
$ |
101,295 |
|
|
$ |
135,411 |
|
Less: PPP net income (loss) (after tax) |
|
(2,068 |
) |
|
|
9,606 |
|
|
|
(5,956 |
) |
|
|
5,846 |
|
|
|
13,066 |
|
|
|
7,538 |
|
|
|
37,779 |
|
Net income, excluding PPP |
|
49,642 |
|
|
|
44,115 |
|
|
|
34,667 |
|
|
|
58,066 |
|
|
|
45,584 |
|
|
|
93,757 |
|
|
|
97,632 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Severance expense |
|
141 |
|
|
|
637 |
|
|
|
— |
|
|
|
1,058 |
|
|
|
— |
|
|
|
778 |
|
|
|
— |
|
Impairments on fixed assets and leases |
|
12 |
|
|
|
86 |
|
|
|
— |
|
|
|
126 |
|
|
|
705 |
|
|
|
98 |
|
|
|
925 |
|
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 |
|
49 |
|
|
|
(49 |
) |
|
|
13,543 |
|
|
|
1,859 |
|
|
|
2,494 |
|
|
|
0 |
|
|
|
3,524 |
|
Derivative credit valuation adjustment |
|
(101 |
) |
|
|
204 |
|
|
|
202 |
|
|
|
(358 |
) |
|
|
(351 |
) |
|
|
103 |
|
|
|
(1,087 |
) |
Tax on surrender of bank-owned life insurance policies |
|
4,141 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,141 |
|
|
|
— |
|
Core net income, excluding PPP |
$ |
57,798 |
|
|
$ |
44,993 |
|
|
$ |
48,412 |
|
|
$ |
78,972 |
|
|
$ |
48,432 |
|
|
$ |
102,791 |
|
|
$ |
100,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average total assets |
$ |
21,654,735 |
|
|
$ |
21,052,920 |
|
|
$ |
20,717,362 |
|
|
$ |
20,514,366 |
|
|
$ |
20,056,020 |
|
|
$ |
21,355,490 |
|
|
$ |
19,595,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Core return on average assets, excluding PPP |
|
1.07 |
% |
|
|
0.87 |
% |
|
|
0.93 |
% |
|
|
1.53 |
% |
|
|
0.97 |
% |
|
|
0.97 |
% |
|
|
1.04 |
% |
Adjusted Net Income and Adjusted ROAA - Pre-Tax Pre-Provision - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
||||||||||||||||
(Dollars in thousands, except per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
|
2023 |
|
2022 |
||||||||||||||
GAAP net income |
$ |
47,574 |
|
|
$ |
53,721 |
|
|
$ |
28,711 |
|
|
$ |
63,912 |
|
|
$ |
58,650 |
|
|
$ |
101,295 |
|
|
$ |
135,411 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income tax expense |
|
20,768 |
|
|
|
14,563 |
|
|
|
7,136 |
|
|
|
17,899 |
|
|
|
18,896 |
|
|
|
35,331 |
|
|
|
38,228 |
|
Provision (benefit) for credit losses |
|
23,629 |
|
|
|
19,603 |
|
|
|
28,216 |
|
|
|
(7,994 |
) |
|
|
23,847 |
|
|
|
43,232 |
|
|
|
39,844 |
|
Provision (benefit) for credit losses on unfunded commitments |
|
(304 |
) |
|
|
280 |
|
|
|
153 |
|
|
|
254 |
|
|
|
608 |
|
|
|
(24 |
) |
|
|
499 |
|
Severance expense |
|
182 |
|
|
|
809 |
|
|
|
— |
|
|
|
1,363 |
|
|
|
— |
|
|
|
991 |
|
|
|
— |
|
Impairments on fixed assets and leases |
|
15 |
|
|
|
109 |
|
|
|
— |
|
|
|
162 |
|
|
|
914 |
|
|
|
124 |
|
|
|
1,200 |
|
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 |
|
62 |
|
|
|
(62 |
) |
|
|
16,909 |
|
|
|
2,394 |
|
|
|
3,232 |
|
|
|
0 |
|
|
|
4,571 |
|
Derivative credit valuation adjustment |
|
(130 |
) |
|
|
259 |
|
|
|
252 |
|
|
|
(461 |
) |
|
|
(455 |
) |
|
|
129 |
|
|
|
(1,412 |
) |
Adjusted net income - pre-tax pre-provision |
$ |
96,833 |
|
|
$ |
89,282 |
|
|
$ |
81,377 |
|
|
$ |
100,994 |
|
|
$ |
105,692 |
|
|
$ |
186,115 |
|
|
$ |
218,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average total assets |
$ |
21,654,735 |
|
|
$ |
21,052,920 |
|
|
$ |
20,717,362 |
|
|
$ |
20,514,366 |
|
|
$ |
20,056,020 |
|
|
$ |
21,355,490 |
|
|
$ |
19,595,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjusted ROAA - pre-tax pre-provision |
|
1.79 |
% |
|
|
1.72 |
% |
|
|
1.56 |
% |
|
|
1.95 |
% |
|
|
2.11 |
% |
|
|
1.76 |
% |
|
|
2.25 |
% |
Adjusted Net Income and Adjusted ROAA - Pre-Tax Pre-Provision, excluding PPP - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
||||||||||||||||
(Dollars in thousands, except per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
|
2023 |
|
2022 |
||||||||||||||
GAAP net income |
$ |
47,574 |
|
|
$ |
53,721 |
|
|
$ |
28,711 |
|
|
$ |
63,912 |
|
|
$ |
58,650 |
|
|
$ |
101,295 |
|
|
$ |
135,411 |
|
Less: PPP net income (loss) (after tax) |
|
(2,068 |
) |
|
|
9,606 |
|
|
|
(5,956 |
) |
|
|
5,846 |
|
|
|
13,066 |
|
|
|
7,538 |
|
|
|
37,779 |
|
Net income, excluding PPP |
|
49,642 |
|
|
|
44,115 |
|
|
|
34,667 |
|
|
|
58,066 |
|
|
|
45,584 |
|
|
|
93,757 |
|
|
|
97,632 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income tax expense |
|
20,768 |
|
|
|
14,563 |
|
|
|
7,136 |
|
|
|
17,899 |
|
|
|
18,896 |
|
|
|
35,331 |
|
|
|
38,228 |
|
Provision (benefit) for credit losses |
|
23,629 |
|
|
|
19,603 |
|
|
|
28,216 |
|
|
|
(7,994 |
) |
|
|
23,847 |
|
|
|
43,232 |
|
|
|
39,844 |
|
Provision (benefit) for credit losses on unfunded commitments |
|
(304 |
) |
|
|
280 |
|
|
|
153 |
|
|
|
254 |
|
|
|
608 |
|
|
|
(24 |
) |
|
|
499 |
|
Severance expense |
|
182 |
|
|
|
809 |
|
|
|
— |
|
|
|
1,363 |
|
|
|
— |
|
|
|
991 |
|
|
|
— |
|
Impairments on fixed assets and leases |
|
15 |
|
|
|
109 |
|
|
|
— |
|
|
|
162 |
|
|
|
914 |
|
|
|
124 |
|
|
|
1,200 |
|
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 |
|
62 |
|
|
|
(62 |
) |
|
|
16,909 |
|
|
|
2,394 |
|
|
|
3,232 |
|
|
|
0 |
|
|
|
4,571 |
|
Derivative credit valuation adjustment |
|
(130 |
) |
|
|
259 |
|
|
|
252 |
|
|
|
(461 |
) |
|
|
(455 |
) |
|
|
129 |
|
|
|
(1,412 |
) |
Adjusted net income - pre-tax pre-provision, excluding PPP |
$ |
98,901 |
|
|
$ |
79,676 |
|
|
$ |
87,333 |
|
|
$ |
95,148 |
|
|
$ |
92,626 |
|
|
$ |
178,577 |
|
|
$ |
180,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average total assets |
$ |
21,654,735 |
|
|
$ |
21,052,920 |
|
|
$ |
20,717,362 |
|
|
$ |
20,514,366 |
|
|
$ |
20,056,020 |
|
|
$ |
21,355,490 |
|
|
$ |
19,595,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjusted ROAA - pre-tax pre-provision, excluding PPP |
|
1.83 |
% |
|
|
1.53 |
% |
|
|
1.67 |
% |
|
|
1.84 |
% |
|
|
1.85 |
% |
|
|
1.69 |
% |
|
|
1.86 |
% |
Core Return on Average Common Equity - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
||||||||||||||||
(Dollars in thousands, except per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
|
2023 |
|
2022 |
||||||||||||||
GAAP net income to common shareholders |
$ |
44,007 |
|
|
$ |
50,265 |
|
|
$ |
25,623 |
|
|
$ |
61,364 |
|
|
$ |
56,519 |
|
|
$ |
94,272 |
|
|
$ |
131,415 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Severance expense |
|
141 |
|
|
|
637 |
|
|
|
— |
|
|
|
1,058 |
|
|
|
— |
|
|
|
778 |
|
|
|
— |
|
Impairments on fixed assets and leases |
|
12 |
|
|
|
86 |
|
|
|
— |
|
|
|
126 |
|
|
|
705 |
|
|
|
98 |
|
|
|
925 |
|
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 |
|
49 |
|
|
|
(49 |
) |
|
|
13,543 |
|
|
|
1,859 |
|
|
|
2,494 |
|
|
|
0 |
|
|
|
3,524 |
|
Derivative credit valuation adjustment |
|
(101 |
) |
|
|
204 |
|
|
|
202 |
|
|
|
(358 |
) |
|
|
(351 |
) |
|
|
103 |
|
|
|
(1,087 |
) |
Tax on surrender of bank-owned life insurance policies |
|
4,141 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,141 |
|
|
|
— |
|
Core earnings |
$ |
52,163 |
|
|
$ |
51,143 |
|
|
$ |
39,368 |
|
|
$ |
82,270 |
|
|
$ |
59,367 |
|
|
$ |
103,306 |
|
|
$ |
134,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average total common shareholders' equity |
$ |
1,335,408 |
|
|
$ |
1,273,780 |
|
|
$ |
1,263,190 |
|
|
$ |
1,259,711 |
|
|
$ |
1,244,819 |
|
|
$ |
1,304,764 |
|
|
$ |
1,248,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Core return on average common equity |
|
15.67 |
% |
|
|
16.28 |
% |
|
|
12.36 |
% |
|
|
25.91 |
% |
|
|
19.13 |
% |
|
|
15.97 |
% |
|
|
21.77 |
% |
Adjusted ROCE - Pre-Tax Pre-Provision - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
||||||||||||||||
(Dollars in thousands, except per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
|
2023 |
|
2022 |
||||||||||||||
GAAP net income to common shareholders |
$ |
44,007 |
|
|
$ |
50,265 |
|
|
$ |
25,623 |
|
|
$ |
61,364 |
|
|
$ |
56,519 |
|
|
$ |
94,272 |
|
|
$ |
131,415 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income tax expense |
|
20,768 |
|
|
|
14,563 |
|
|
|
7,136 |
|
|
|
17,899 |
|
|
|
18,896 |
|
|
|
35,331 |
|
|
|
38,228 |
|
Provision (benefit) for credit losses |
|
23,629 |
|
|
|
19,603 |
|
|
|
28,216 |
|
|
|
(7,994 |
) |
|
|
23,847 |
|
|
|
43,232 |
|
|
|
39,844 |
|
Provision (benefit) for credit losses on unfunded commitments |
|
(304 |
) |
|
|
280 |
|
|
|
153 |
|
|
|
254 |
|
|
|
608 |
|
|
|
(24 |
) |
|
|
499 |
|
Severance expense |
|
182 |
|
|
|
809 |
|
|
|
— |
|
|
|
1,363 |
|
|
|
— |
|
|
|
991 |
|
|
|
— |
|
Impairments on fixed assets and leases |
|
15 |
|
|
|
109 |
|
|
|
— |
|
|
|
162 |
|
|
|
914 |
|
|
|
124 |
|
|
|
1,200 |
|
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 |
|
62 |
|
|
|
(62 |
) |
|
|
16,909 |
|
|
|
2,394 |
|
|
|
3,232 |
|
|
|
0 |
|
|
|
4,571 |
|
Derivative credit valuation adjustment |
|
(130 |
) |
|
|
259 |
|
|
|
252 |
|
|
|
(461 |
) |
|
|
(455 |
) |
|
|
129 |
|
|
|
(1,412 |
) |
Pre-tax pre-provision adjusted net income available to common shareholders |
$ |
93,266 |
|
|
$ |
85,826 |
|
|
$ |
78,289 |
|
|
$ |
98,446 |
|
|
$ |
103,561 |
|
|
$ |
179,092 |
|
|
$ |
214,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average total common shareholders' equity |
$ |
1,335,408 |
|
|
$ |
1,273,780 |
|
|
$ |
1,263,190 |
|
|
$ |
1,259,711 |
|
|
$ |
1,244,819 |
|
|
$ |
1,304,764 |
|
|
$ |
1,248,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjusted ROCE - pre-tax pre-provision |
|
28.01 |
% |
|
|
27.33 |
% |
|
|
24.59 |
% |
|
|
31.01 |
% |
|
|
33.37 |
% |
|
|
27.68 |
% |
|
|
34.62 |
% |
Net Interest Margin, Tax Equivalent, excluding PPP - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
||||||||||||||||
(Dollars in thousands, except per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
|
2023 |
|
2022 |
||||||||||||||
GAAP net interest income |
$ |
165,271 |
|
|
$ |
149,899 |
|
|
$ |
135,137 |
|
|
$ |
159,032 |
|
|
$ |
164,852 |
|
|
$ |
315,170 |
|
|
$ |
329,551 |
|
PPP net interest (income) expense |
|
765 |
|
|
|
(14,106 |
) |
|
|
2,791 |
|
|
|
(9,632 |
) |
|
|
(18,946 |
) |
|
|
(13,341 |
) |
|
|
(53,561 |
) |
Tax-equivalent adjustment |
|
390 |
|
|
|
375 |
|
|
|
342 |
|
|
|
334 |
|
|
|
270 |
|
|
|
765 |
|
|
|
509 |
|
Net interest income, tax equivalent, excluding PPP |
$ |
166,426 |
|
|
$ |
136,168 |
|
|
$ |
138,270 |
|
|
$ |
149,734 |
|
|
$ |
146,176 |
|
|
$ |
302,594 |
|
|
$ |
276,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
GAAP average total interest earning assets |
$ |
21,073,680 |
|
|
$ |
20,514,677 |
|
|
$ |
20,211,028 |
|
|
$ |
20,021,455 |
|
|
$ |
19,525,936 |
|
|
$ |
20,795,724 |
|
|
$ |
19,051,757 |
|
Average PPP loans |
|
(207,127 |
) |
|
|
(889,235 |
) |
|
|
(1,065,919 |
) |
|
|
(1,349,403 |
) |
|
|
(1,863,429 |
) |
|
|
(546,297 |
) |
|
|
(2,250,224 |
) |
Adjusted average total interest earning assets, excluding PPP |
$ |
20,866,553 |
|
|
$ |
19,625,442 |
|
|
$ |
19,145,109 |
|
|
$ |
18,672,052 |
|
|
$ |
17,662,507 |
|
|
$ |
20,249,427 |
|
|
$ |
16,801,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net interest margin, tax equivalent, excluding PPP |
|
3.20 |
% |
|
|
2.80 |
% |
|
|
2.87 |
% |
|
|
3.18 |
% |
|
|
3.32 |
% |
|
|
3.01 |
% |
|
|
3.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Yield, excluding PPP |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
||||||||||||||||
(Dollars in thousands except per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
|
2023 |
|
2022 |
||||||||||||||
Interest income on loans and leases |
$ |
252,894 |
|
|
$ |
255,913 |
|
|
$ |
218,740 |
|
|
$ |
200,457 |
|
|
$ |
168,941 |
|
|
$ |
508,807 |
|
|
$ |
326,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
PPP interest income |
|
(1,633 |
) |
|
|
(23,551 |
) |
|
|
(7,249 |
) |
|
|
(14,666 |
) |
|
|
(20,572 |
) |
|
|
(25,184 |
) |
|
|
(57,466 |
) |
Interest income on core loans (Loans and leases, excluding PPP) |
$ |
251,261 |
|
|
$ |
232,362 |
|
|
$ |
211,491 |
|
|
$ |
185,791 |
|
|
$ |
148,369 |
|
|
$ |
483,623 |
|
|
$ |
268,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average total loans and leases |
$ |
14,842,432 |
|
|
$ |
15,477,973 |
|
|
$ |
15,388,003 |
|
|
$ |
15,653,983 |
|
|
$ |
14,918,498 |
|
|
$ |
15,158,447 |
|
|
$ |
14,291,229 |
|
Average PPP loans |
|
(207,127 |
) |
|
|
(889,235 |
) |
|
|
(1,065,919 |
) |
|
|
(1,349,403 |
) |
|
|
(1,863,429 |
) |
|
|
(546,297 |
) |
|
|
(2,250,224 |
) |
Adjusted average total loans and leases |
$ |
14,635,305 |
|
|
$ |
14,588,738 |
|
|
$ |
14,322,084 |
|
|
$ |
14,304,580 |
|
|
$ |
13,055,069 |
|
|
$ |
14,612,150 |
|
|
$ |
12,041,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loan yield, excluding PPP |
|
6.89 |
% |
|
|
6.46 |
% |
|
|
5.86 |
% |
|
|
5.15 |
% |
|
|
4.56 |
% |
|
|
6.67 |
% |
|
|
4.50 |
% |
Core Efficiency Ratio - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
||||||||||||||||
(Dollars in thousands, except per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
|
2023 |
|
2022 |
||||||||||||||
GAAP net interest income |
$ |
165,271 |
|
|
$ |
149,899 |
|
|
$ |
135,137 |
|
|
$ |
159,032 |
|
|
$ |
164,852 |
|
|
$ |
315,170 |
|
|
$ |
329,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
GAAP non-interest income |
$ |
15,997 |
|
|
$ |
18,121 |
|
|
$ |
7,345 |
|
|
$ |
(9,017 |
) |
|
$ |
12,746 |
|
|
$ |
34,118 |
|
|
$ |
33,944 |
|
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 |
|
62 |
|
|
|
(62 |
) |
|
|
16,909 |
|
|
|
2,394 |
|
|
|
3,232 |
|
|
|
— |
|
|
|
4,571 |
|
Derivative credit valuation adjustment |
|
(130 |
) |
|
|
259 |
|
|
|
252 |
|
|
|
(461 |
) |
|
|
(455 |
) |
|
|
129 |
|
|
|
(1,412 |
) |
Core non-interest income |
|
20,966 |
|
|
|
18,318 |
|
|
|
24,506 |
|
|
|
16,381 |
|
|
|
15,523 |
|
|
|
39,284 |
|
|
|
37,103 |
|
Core revenue |
$ |
186,237 |
|
|
$ |
168,217 |
|
|
$ |
159,643 |
|
|
$ |
175,413 |
|
|
$ |
180,375 |
|
|
$ |
354,454 |
|
|
$ |
366,654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
GAAP non-interest expense |
$ |
89,297 |
|
|
$ |
80,133 |
|
|
$ |
78,419 |
|
|
$ |
76,198 |
|
|
$ |
76,205 |
|
|
$ |
169,430 |
|
|
$ |
150,012 |
|
Severance expense |
|
(182 |
) |
|
|
(809 |
) |
|
|
— |
|
|
|
(1,363 |
) |
|
|
— |
|
|
|
(991 |
) |
|
|
— |
|
Impairments on fixed assets and leases |
|
(15 |
) |
|
|
(109 |
) |
|
|
— |
|
|
|
(162 |
) |
|
|
(914 |
) |
|
|
(124 |
) |
|
|
(1,200 |
) |
Core non-interest expense |
$ |
89,100 |
|
|
$ |
79,215 |
|
|
$ |
78,419 |
|
|
$ |
74,673 |
|
|
$ |
75,291 |
|
|
$ |
168,315 |
|
|
$ |
148,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Core efficiency ratio (1) |
|
47.84 |
% |
|
|
47.09 |
% |
|
|
49.12 |
% |
|
|
42.57 |
% |
|
|
41.74 |
% |
|
|
47.49 |
% |
|
|
40.59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Core efficiency ratio calculated as core non-interest expense divided by core revenue. |
Tangible Common Equity to Tangible Assets - Customers Bancorp |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
||||||||||
GAAP total shareholders' equity |
$ |
1,456,652 |
|
|
$ |
1,421,020 |
|
|
$ |
1,402,961 |
|
|
$ |
1,386,931 |
|
|
$ |
1,353,390 |
|
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 |
$ |
1,315,229 |
|
|
$ |
1,279,597 |
|
|
$ |
1,261,538 |
|
|
$ |
1,245,508 |
|
|
$ |
1,211,967 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP total assets |
$ |
22,028,565 |
|
|
$ |
21,751,614 |
|
|
$ |
20,896,112 |
|
|
$ |
20,367,621 |
|
|
$ |
20,251,996 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill and other intangibles |
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
Tangible assets |
$ |
22,024,936 |
|
|
$ |
21,747,985 |
|
|
$ |
20,892,483 |
|
|
$ |
20,363,992 |
|
|
$ |
20,248,367 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible common equity to tangible assets |
|
6.0 |
% |
|
|
5.9 |
% |
|
|
6.0 |
% |
|
|
6.1 |
% |
|
|
6.0 |
% |
Tangible Common Equity to Tangible Assets, excluding PPP - Customers Bancorp |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
||||||||||
GAAP total shareholders' equity |
$ |
1,456,652 |
|
|
$ |
1,421,020 |
|
|
$ |
1,402,961 |
|
|
$ |
1,386,931 |
|
|
$ |
1,353,390 |
|
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 |
$ |
1,315,229 |
|
|
$ |
1,279,597 |
|
|
$ |
1,261,538 |
|
|
$ |
1,245,508 |
|
|
$ |
1,211,967 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP total assets |
$ |
22,028,565 |
|
|
$ |
21,751,614 |
|
|
$ |
20,896,112 |
|
|
$ |
20,367,621 |
|
|
$ |
20,251,996 |
|
Loans receivable, PPP |
|
(188,763 |
) |
|
|
(246,258 |
) |
|
|
(998,153 |
) |
|
|
(1,154,632 |
) |
|
|
(1,570,160 |
) |
Total assets, excluding PPP |
$ |
21,839,802 |
|
|
$ |
21,505,356 |
|
|
$ |
19,897,959 |
|
|
$ |
19,212,989 |
|
|
$ |
18,681,836 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill and other intangibles |
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
|
|
(3,629 |
) |
Tangible assets, excluding PPP |
$ |
21,836,173 |
|
|
$ |
21,501,727 |
|
|
$ |
19,894,330 |
|
|
$ |
19,209,360 |
|
|
$ |
18,678,207 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible common equity to tangible assets, excluding PPP |
|
6.0 |
% |
|
|
6.0 |
% |
|
|
6.3 |
% |
|
|
6.5 |
% |
|
6.5 |
% |
Tangible Book Value per Common Share - Customers Bancorp |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except share and per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
||||||||||
GAAP total shareholders' equity |
$ |
1,456,652 |
|
|
$ |
1,421,020 |
|
|
$ |
1,402,961 |
|
|
$ |
1,386,931 |
|
|
$ |
1,353,390 |
|
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 |
$ |
1,315,229 |
|
|
$ |
1,279,597 |
|
|
$ |
1,261,538 |
|
|
$ |
1,245,508 |
|
|
$ |
1,211,967 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common shares outstanding |
|
31,282,318 |
|
|
|
31,239,750 |
|
|
|
32,373,697 |
|
|
|
32,475,502 |
|
|
|
32,449,486 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible book value per common share |
$ |
42.04 |
|
|
$ |
40.96 |
|
|
$ |
38.97 |
|
|
$ |
38.35 |
|
|
$ |
37.35 |
|
|
|
|
|
|
|
|
|
|
|
Core Loans (Total Loans and Leases, excluding PPP) |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
||||||||||
Total loans and leases |
$ |
13,910,907 |
|
|
$ |
15,063,034 |
|
|
$ |
15,794,671 |
|
|
$ |
15,336,688 |
|
|
$ |
15,664,353 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans receivable, PPP |
|
(188,763 |
) |
|
|
(246,258 |
) |
|
|
(998,153 |
) |
|
|
(1,154,632 |
) |
|
|
(1,570,160 |
) |
Core Loans (Total loans and leases, excluding PPP) |
$ |
13,722,144 |
|
|
$ |
14,816,776 |
|
|
$ |
14,796,518 |
|
|
$ |
14,182,056 |
|
|
$ |
14,094,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Core Loans Held for Investment (Total Loans and Leases Held for Investment, excluding PPP) |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
||||||||||
Total loans and leases, held for investment |
$ |
13,832,799 |
|
|
$ |
14,638,977 |
|
|
$ |
15,466,359 |
|
|
$ |
15,331,464 |
|
|
$ |
15,657,758 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans receivable, PPP |
|
(188,763 |
) |
|
|
(246,258 |
) |
|
|
(998,153 |
) |
|
|
(1,154,632 |
) |
|
|
(1,570,160 |
) |
Core Loans Held for Investment (Total loans and leases held for investment, excluding PPP) |
$ |
13,644,036 |
|
|
$ |
14,392,719 |
|
|
$ |
14,468,206 |
|
|
$ |
14,176,832 |
|
|
$ |
14,087,598 |
|
|
|
|
|
|
|
|
|
|
|
Total Assets, excluding PPP |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
||||||||||
Total assets |
$ |
22,028,565 |
|
|
$ |
21,751,614 |
|
|
$ |
20,896,112 |
|
|
$ |
20,367,621 |
|
|
$ |
20,251,996 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans receivable, PPP |
|
(188,763 |
) |
|
|
(246,258 |
) |
|
|
(998,153 |
) |
|
|
(1,154,632 |
) |
|
|
(1,570,160 |
) |
Total assets, excluding PPP |
$ |
21,839,802 |
|
|
$ |
21,505,356 |
|
|
$ |
19,897,959 |
|
|
$ |
19,212,989 |
|
|
$ |
18,681,836 |
|
|
|
|
|
|
|
|
|
|
|
Coverage of credit loss reserves for loans and leases held for investment, excluding PPP |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in thousands, except per share data) |
Q2 2023 |
|
Q1 2023 |
|
Q4 2022 |
|
Q3 2022 |
|
Q2 2022 |
||||||||||
Loans and leases receivable |
$ |
12,826,531 |
|
|
$ |
13,391,610 |
|
|
$ |
14,143,047 |
|
|
$ |
13,762,374 |
|
|
$ |
13,783,155 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans receivable, PPP |
|
(188,763 |
) |
|
|
(246,258 |
) |
|
|
(998,153 |
) |
|
|
(1,154,632 |
) |
|
|
(1,570,160 |
) |
Loans and leases held for investment, excluding PPP |
$ |
12,637,768 |
|
|
$ |
13,145,352 |
|
|
$ |
13,144,894 |
|
|
$ |
12,607,742 |
|
|
$ |
12,212,995 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses on loans and leases |
$ |
139,656 |
|
|
$ |
130,281 |
|
|
$ |
130,924 |
|
|
$ |
130,197 |
|
|
$ |
156,530 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Coverage of credit loss reserves for loans and leases held for investment, excluding PPP |
|
1.11 |
% |
|
|
0.99 |
% |
|
|
1.00 |
% |
|
|
1.03 |
% |
|
|
1.28 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230726448179/en/
David W. Patti, Communications Director 610-451-9452
Source: Customers Bancorp, Inc.
FAQ
What was Customers Bancorp's net income in Q2 2023?
What was Customers Bancorp's CET 1 capital ratio at the end of June 2023?
What was the net interest margin in Q2 2023?
How much did total deposits grow by in Q2 2023?
What was the change in non-performing assets compared to the previous quarter?