Customers Bancorp Reports Results for Third Quarter 2023

Rhea-AI Summary

Customers Bancorp reports strong Q3 2023 results with net income of $83.0 million and core earnings of $83.3 million. Q3 2023 net interest margin increases to 3.70%. Total deposits grow by $244.9 million. Non-interest bearing deposits increase by $268.5 million. Q3 2023 provision for credit losses decreases to $17.1 million. Book value per share and tangible book value per share both grow by $3.31.

Positive

• Customers Bancorp reports strong Q3 2023 results with net income of $83.0 million and core earnings of $83.3 million.
• Q3 2023 net interest margin increases to 3.70%.
• Total deposits grow by $244.9 million.
• Non-interest bearing deposits increase by $268.5 million.
• Q3 2023 provision for credit losses decreases to $17.1 million.
• Book value per share and tangible book value per share both grow by $3.31.

Negative

• None.

 

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

Third Quarter 2023 Highlights

• Q3 2023 net income available to common shareholders was $83.0 million, or $2.58 per diluted share; ROAA was 1.57% and ROCE was 23.97%.
• Q3 2023 core earnings* were $83.3 million, or $2.59 per diluted share; Core ROAA* was 1.57% and Core ROCE* was 24.06%.
• CET 1 capital ratio of 11.3%¹ at September 30, 2023, compared to 10.3% at June 30, 2023, achieving goal of 11.0% - 11.5% one quarter earlier than expected.
• Q3 2023 net interest margin, tax equivalent (NIM) was 3.70%, an increase of 55 basis points over Q2 2023 NIM of 3.15%, largely resulting from higher than expected discount accretion on the Venture Banking portfolio acquired in Q2 2023.
• Total deposits grew by $244.9 million in Q3 2023 over Q2 2023 with a significant positive mix shift. Q3 2023 core deposit growth of $1.3 billion drove the repayment of maturing wholesale CDs of $937 million and callable FHLB advances of $510 million. Q3 2023 non-interest bearing deposits increased $268.5 million, or 6%, over Q2 2023.
• Total estimated insured deposits were 78%² of total deposits at September 30, 2023, with immediately available liquidity covering uninsured deposits by approximately 239%.
• Q3 2023 adjusted pre-tax pre-provision net income* was $128.6 million; adjusted pre-tax pre-provision ROAA* was 2.32%; and adjusted pre-tax pre-provision ROCE* was 36.04%.
• Q3 2023 provision for credit losses on loans and leases of $17.1 million was lower compared to Q2 2023 largely driven by lower balances in loans held for investment.
• Non-performing assets were $30.0 million, or 0.14% of total assets, at September 30, 2023 compared to 0.13% at June 30, 2023. Allowance for credit losses on loans and leases equaled 466% of non-performing loans at September 30, 2023, compared to 494% at June 30, 2023.
• Q3 2023 book value per share and tangible book value per share* both grew by $3.31, or 7.9% over Q2 2023, driven by strong quarterly earnings combined with decreased AOCI losses of $18.4 million over the same time period.

____________________
*		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 September 30, 2023 are estimates.
2		Uninsured deposits (estimate) of $4.8 billion to be reported on the Bank's call report, less state and municipal deposits of $591.3 million collateralized by standby letters of credit from the FHLB and from our affiliates of $99.2 million.

CEO Commentary

“We are pleased to share our third quarter results as we continued to execute on our strategic priorities and delivered another strong quarter for shareholders,” said Customers Bancorp Chairman and CEO Jay Sidhu. “While the banking industry has broadly stabilized following the events earlier this year, the headwinds of higher funding costs and net interest margin compression have not subsided for most banks. We demonstrated the sustainability of our differentiated deposit strategy by growing core deposits by $1.3 billion in the third quarter resulting in $245 million in total deposit growth. The remaining liquidity inflows, and a modest amount of balance sheet cash, were used to payoff maturing wholesale CDs of $937 million and $510 million in callable FHLB advances. The core deposit growth was broad-based with 13 different channels contributing $25 million or more and benefited from the onboarding of deposits from our new Venture Banking clients. Non-interest bearing deposits as a percentage of deposits increased modestly to 26%. Our net interest margin continued to expand in the quarter in contrast to the industry headwinds. Elevated payoffs and maturities in the acquired Venture Banking portfolio resulted in outsized discount accretion which contributed to our net interest income. Capital levels continued to increase substantially during the quarter as evidenced by a 50 basis point increase in our TCE ratio* and a 100 basis point increase in our CET 1 ratio to end the quarter at 11.3%. We remain well-positioned to continue strengthening our deposit franchise, improve our profitability, and increase our capital ratios,” stated Jay Sidhu.

“Our Q3 2023 GAAP earnings were $83.0 million, or $2.58 per diluted share, well above consensus estimates. At September 30, 2023, our deposit base was well diversified, with approximately 78%² of total deposits insured. We maintain a strong liquidity position, with $9.7 billion of liquidity immediately available, which covers approximately 239% of uninsured deposits and our loan to deposit ratio was 75%. We continue to be selective on new loan production given the uncertain environment and our commitment to improve our capital ratios and are focusing new loan production where we have a holistic and primary relationship. We are seeing attractive new origination opportunities and we remain firmly committed to serving our clients. We have ample liquidity and capital to support their needs. At September 30, 2023, we had $3.4 billion of cash on hand, which we believe is prudent balance sheet and liquidity management in the current environment. Asset quality remains exceptional with our NPA ratio remaining roughly flat at just 0.14% of total assets and reserve levels are robust at over 465% of total non-performing loans at the end of Q3 2023. Our exposure to higher risk commercial real estate such as the office and retail sectors is minimal, each representing only 1% of the loan portfolio. Continued execution on our strategic priorities has positioned us favorably for success through the remainder of 2023 and into 2024 from a capital, credit, liquidity, interest rate risk and earnings perspective. We will remain disciplined, but opportunistic, with our balance sheet capacity to minimize risk and maintain robust capital levels. We are extremely proud of the progress we made in the quarter and are confident in our risk management capabilities and ability to provide excellent service to our clients in all operating environments. We are excited and optimistic about the opportunities ahead,” Jay Sidhu continued.

____________________
*		Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.
1		Regulatory capital ratios as of September 30, 2023 are estimates.
2		Uninsured deposits (estimate) of $4.8 billion to be reported on the Bank's call report, less state and municipal deposits of $591.3 million collateralized by standby letters of credit from the FHLB and from our affiliates of $99.2 million.

Financial Highlights
(Dollars in thousands, except per share data)		At or Three Months Ended								Increase (Decrease)
		September 30, 2023				June 30, 2023
Profitability Metrics:
Net income available for common shareholders		$	82,953			$	44,007			$	38,946			88.5	%
Diluted earnings per share		$	2.58			$	1.39			$	1.19			85.6	%
Core earnings*		$	83,294			$	52,163			$	31,131			59.7	%
Core earnings per share*		$	2.59			$	1.65			$	0.94			57.0	%
Return on average assets ("ROAA")			1.57	%			0.88	%			0.69
Core ROAA*			1.57	%			1.03	%			0.54
Return on average common equity ("ROCE")			23.97	%			13.22	%			10.75
Core ROCE*			24.06	%			15.67	%			8.39
Adjusted pre-tax pre-provision net income*		$	128,564			$	96,833			$	31,731			32.8	%
Net interest margin, tax equivalent			3.70	%			3.15	%			0.55
Loan yield			7.87	%			6.83	%			1.04
Cost of deposits			3.24	%			3.11	%			0.13
Efficiency ratio			41.01	%			49.25	%			(8.24	)
Core efficiency ratio*			41.04	%			47.84	%			(6.80	)
Balance Sheet Trends:
Total assets		$	21,857,152			$	22,028,565			$	(171,413	)		(0.8	)%
Total loans and leases		$	13,713,482			$	13,910,907			$	(197,425	)		(1.4	)%
Non-interest bearing demand deposits		$	4,758,682			$	4,490,198			$	268,484			6.0	%
Total deposits		$	18,195,364			$	17,950,431			$	244,933			1.4	%
Capital Metrics:
Common Equity		$	1,423,813			$	1,318,858			$	104,955			8.0	%
Tangible Common Equity*		$	1,420,184			$	1,315,229			$	104,955			8.0	%
Common Equity to Total Assets			6.5	%			6.0	%			0.5
Tangible Common Equity to Tangible Assets*			6.5	%			6.0	%			0.5
Book Value per common share		$	45.47			$	42.16			$	3.31			7.9	%
Tangible Book Value per common share*		$	45.36			$	42.04			$	3.32			7.9	%
Common equity Tier 1 capital ratio (1)			11.3	%			10.3	%			1.0
Total risk based capital ratio (1)			14.3	%			13.2	%			1.1
(1) Regulatory capital ratios as of September 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.

Financial Highlights
(Dollars in thousands, except per share data)		At or Three Months Ended								Increase (Decrease)							Nine Months Ended								Increase (Decrease)
		September 30, 2023				September 30, 2022											September 30, 2023				September 30, 2022
Profitability Metrics:
Net income available for common shareholders		$	82,953			$	61,364			$	21,589			35.2	%		$	177,225			$	192,779			$	(15,554	)		(8.1	)%
Diluted earnings per share		$	2.58			$	1.85			$	0.73			39.5	%		$	5.53			$	5.72			$	(0.19	)		(3.3	)%
Core earnings*		$	83,294			$	82,270			$	1,024			1.2	%		$	186,600			$	217,047			$	(30,447	)		(14.0	)%
Core earnings per share*		$	2.59			$	2.48			$	0.11			4.4	%		$	5.82			$	6.44			$	(0.62	)		(9.6	)%
Return on average assets ("ROAA")			1.57	%			1.24	%			0.33							1.17	%			1.34	%			(0.17	)
Core ROAA*			1.57	%			1.64	%			(0.07	)						1.22	%			1.50	%			(0.28	)
Return on average common equity ("ROCE")			23.97	%			19.33	%			4.64							17.84	%			20.58	%			(2.74	)
Core ROCE*			24.06	%			25.91	%			(1.85	)						18.79	%			23.17	%			(4.38	)
Adjusted pre-tax pre-provision net income*		$	128,564			$	100,994			$	27,570			27.3	%		$	314,679			$	319,335			$	(4,656	)		(1.5	)%
Net interest margin, tax equivalent			3.70	%			3.16	%			0.54							3.28	%			3.38	%			(0.10	)
Loan yield			7.87	%			5.08	%			2.79							7.12	%			4.77	%			2.35
Cost of deposits			3.24	%			1.48	%			1.76							3.23	%			0.80	%			2.43
Efficiency ratio			41.01	%			50.00	%			(8.99	)						45.62	%			43.46	%			2.16
Core efficiency ratio*			41.04	%			42.57	%			(1.53	)						45.03	%			41.23	%			3.80
Balance Sheet Trends:
Total assets		$	21,857,152			$	20,367,621			$	1,489,531			7.3	%
Total loans and leases		$	13,713,482			$	15,336,688			$	(1,623,206	)		(10.6	)%
Non-interest bearing demand deposits		$	4,758,682			$	2,993,793			$	1,764,889			59.0	%
Total deposits		$	18,195,364			$	17,522,438			$	672,926			3.8	%
Capital Metrics:
Common Equity		$	1,423,813			$	1,249,137			$	174,676			14.0	%
Tangible Common Equity*		$	1,420,184			$	1,245,508			$	174,676			14.0	%
Common Equity to Total Assets			6.5	%			6.1	%			0.4
Tangible Common Equity to Tangible Assets*			6.5	%			6.1	%			0.4
Book Value per common share		$	45.47			$	38.46			$	7.01			18.2	%
Tangible Book Value per common share*		$	45.36			$	38.35			$	7.01			18.3	%
Common equity Tier 1 capital ratio (1)			11.3	%			9.8	%			1.5
Total risk based capital ratio (1)			14.3	%			12.5	%			1.8
(1) Regulatory capital ratios as of September 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)		September 30, 2023			% of Total			June 30, 2023			% of Total			September 30, 2022			% of Total
Loans and Leases Held for Investment
Commercial:
Commercial & industrial:
Specialty lending		$	5,422,161		40.0	%		$	5,534,832		40.0	%		$	5,103,974		33.3	%
Other commercial & industrial			1,115,364		8.2				1,052,145		7.6				1,064,332		7.0
Multifamily			2,130,213		15.7				2,151,734		15.6				2,263,268		14.8
Loans to mortgage companies			1,042,549		7.7				1,108,598		8.0				1,708,587		11.1
Commercial real estate owner occupied			794,815		5.9				842,042		6.1				726,670		4.7
Loans receivable, PPP			137,063		1.0				188,763		1.4				1,154,632		7.5
Commercial real estate non-owner occupied			1,178,203		8.7				1,211,091		8.8				1,263,211		8.2
Construction			252,588		1.8				212,214		1.5				136,133		0.9
Total commercial loans and leases			12,072,956		89.0				12,301,419		89.0				13,420,807		87.5
Consumer:
Residential			483,133		3.6				487,199		3.5				465,772		3.1
Manufactured housing			40,129		0.3				41,664		0.3				46,990		0.3
Installment:
Personal			629,843		4.6				752,470		5.4				1,056,432		6.9
Other			337,053		2.5				250,047		1.8				341,463		2.2
Total installment loans			966,896		7.1				1,002,517		7.2				1,397,895		9.1
Total consumer loans			1,490,158		11.0				1,531,380		11.0				1,910,657		12.5
Total loans and leases held for investment		$	13,563,114		100.0	%		$	13,832,799		100.0	%		$	15,331,464		100.0	%
Loans Held for Sale
Commercial:
Multifamily		$	—		—	%		$	—		—	%		$	4,108		78.6	%
Commercial real estate non-owner occupied			—		—				—		—				—		—
Total commercial loans and leases			—		—				—		—				4,108		78.6
Consumer:
Residential			1,005		0.7				1,234		1.6				1,116		21.4
Installment:
Personal			124,848		83.0				76,874		98.4				—		—
Other			24,515		16.3				—		—				—		—
Total installment loans			149,363		99.3				76,874		98.4				—		—
Total consumer loans			150,368		100.0				78,108		100.0				1,116		21.4
Total loans held for sale		$	150,368		100.0	%		$	78,108		100.0	%		$	5,224		100.0	%
Total loans and leases portfolio		$	13,713,482					$	13,910,907					$	15,336,688

Loans and Leases Held for Investment

Loans and leases held for investment were $13.6 billion at September 30, 2023, down $269.7 million, or 1.9%, from June 30, 2023, consistent with our stated goal of purposely moderating loan growth and exiting non-strategic relationships. Loans held for investment decreased modestly in every category, except for relatively small increases in construction loans and in other commercial and industrial ("C&I") loans quarter-over-quarter. Other C&I loans increased $63.2 million, or 6.0% quarter-over-quarter, to $1.1 billion. Loans to mortgage companies decreased $66.0 million, or 6.0% quarter-over-quarter due to lower mortgage activity. Consumer installment loans held for investment decreased $35.6 million, or 3.6% quarter-over-quarter, to $1.0 billion as we continue to execute on our held-for-sale strategy and de-risk the held-for-investment loan portfolio in 2023.

Loans and leases held for investment of $13.6 billion at September 30, 2023 was down $1.8 billion, or 11.5%, year-over-year, largely driven by reduced balances in PPP loans of $1.0 billion, loans to mortgage companies of $666.0 million and consumer installment loans of $431.0 million, offset in part by net growth in the lower risk variable rate specialty lending verticals of $318.2 million. Consumer installment loans held for investment decreased $431.0 million, or 30.8% year-over-year, to $966.9 million as we continue to execute on our held-for-sale strategy and de-risk the held-for-investment loan portfolio in 2023.

Loans Held for Sale

Loans held for sale increased $72.3 million quarter-over-quarter, and were $150.4 million at September 30, 2023 as we continue to build out our held-for-sale strategy in 2023.

Allowance for Credit Losses on Loans and Leases

The following table presents the allowance for credit losses on loans and leases as of the dates and for the periods presented:
		At or Three Months Ended								Increase (Decrease)				At or Three Months Ended								Increase (Decrease)
(Dollars in thousands)		September 30, 2023				June 30, 2023								September 30, 2023				September 30, 2022
Allowance for credit losses on loans and leases		$	139,213			$	139,656			$	(443	)		$	139,213			$	130,197			$	9,016
Provision (benefit) for credit losses on loans and leases		$	17,055			$	22,363			$	(5,308	)		$	17,055			$	(7,836	)		$	24,891
Net charge-offs from loans held for investment		$	17,498			$	15,564			$	1,934			$	17,498			$	18,497			$	(999	)
Annualized net charge-offs to average loans and leases			0.50	%			0.42	%							0.50	%			0.47	%
Coverage of credit loss reserves for loans and leases held for investment			1.10	%			1.09	%							1.10	%			0.95	%

Net charge-offs were relatively stable with $17.5 million in Q3 2023, compared to $15.6 million in Q2 2023 and $18.5 million in Q3 2022.

Provision (benefit) for Credit Losses

		Three Months Ended							Increase (Decrease)				Three Months Ended							Increase (Decrease)
(Dollars in thousands)		September 30, 2023			June 30, 2023								September 30, 2023			September 30, 2022
Provision (benefit) for credit losses on loans and leases		$	17,055		$	22,363			$	(5,308	)		$	17,055		$	(7,836	)		$	24,891
Provision (benefit) for credit losses on available for sale debt securities			801			1,266				(465	)			801			(158	)			959
Provision for credit losses			17,856			23,629				(5,773	)			17,856			(7,994	)			25,850
Provision (benefit) for credit losses on unfunded commitments			48			(304	)			352				48			254				(206	)
Total provision for credit losses		$	17,904		$	23,325			$	(5,421	)		$	17,904		$	(7,740	)		$	25,644

The provision for credit losses on loans and leases in Q3 2023 was $17.1 million, compared to $22.4 million in Q2 2023 and a benefit to provision of $7.8 million in Q3 2022. The lower provision in Q3 2023 was primarily due to lower balances in loans held for investment. The benefit to provision in Q3 2022 was primarily due to the sale of $500.0 million of unsecured consumer installment loans, partially offset by loan growth and the recognition of weaker macroeconomic forecasts. The sale transaction resulted in approximately $36.8 million of release in allowance for credit losses, which was included in core earnings* in Q3 2022.

The provision for credit losses on available for sale investment securities in Q3 2023 was $0.8 million, compared to provision of $1.3 million in Q2 2023 and a benefit to provision of $0.2 million in Q3 2022.

Asset Quality

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

(Dollars in thousands)		September 30, 2023				June 30, 2023				Increase (Decrease)				September 30, 2023				September 30, 2022				Increase (Decrease)
Non-performing assets ("NPAs"):
Nonaccrual / non-performing loans ("NPLs")		$	29,867			$	28,244			$	1,623			$	29,867			$	27,919			$	1,948
Non-performing assets		$	29,970			$	28,380			$	1,590			$	29,970			$	27,965			$	2,005
NPLs to total loans and leases			0.22	%			0.20	%							0.22	%			0.18	%
Reserves to NPLs			466.11	%			494.46	%							466.11	%			466.34	%
NPAs to total assets			0.14	%			0.13	%							0.14	%			0.14	%
Loans and leases (1) risk ratings:
Commercial loans and leases (2)
Pass		$	10,503,731			$	10,667,619			$	(163,888	)		$	10,503,731			$	10,262,647			$	241,084
Special Mention			189,329				166,468				22,861				189,329				104,560				84,769
Substandard			280,267				272,301				7,966				280,267				329,878				(49,611	)
Total commercial loans and leases			10,973,327				11,106,388				(133,061	)			10,973,327				10,697,085				276,242
Consumer loans
Performing			1,473,493				1,508,208				(34,715	)			1,473,493				1,893,977				(420,484	)
Non-performing			16,665				23,172				(6,507	)			16,665				16,680				(15	)
Total consumer loans			1,490,158				1,531,380				(41,222	)			1,490,158				1,910,657				(420,499	)
Loans and leases receivable (1)		$	12,463,485			$	12,637,768			$	(174,283	)		$	12,463,485			$	12,607,742			$	(144,257	)
(1) Risk ratings are assigned to loans and leases held for investment, and excludes loans held for sale and loans receivable, mortgage warehouse, at fair value.
(2) Excludes loan receivable, PPP, as eligible PPP loans are fully guaranteed by the Small Business Administration.

Over the last decade, 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 September 30, 2023 were less than 5% of total assets and approximately 7% of total loans and leases held for investment, and were supported by an allowance for credit losses of $58.2 million. At September 30, 2023, our consumer installment portfolio had the following characteristics: average original FICO score of 734, average debt-to-income of 19% and average borrower income of $106 thousand.

Non-performing loans at September 30, 2023 remained relatively stable at 0.22% of total loans and leases, compared to 0.20% at June 30, 2023 and 0.18% at September 30, 2022.

Investment Securities

Our investment securities portfolio, including debt securities classified as available for sale ("AFS") and held to maturity ("HTM") provides periodic cash flows through regular maturities and amortization, can be used as collateral to secure additional funding, and is an important component of our liquidity position.

The following table presents the composition of our investment securities portfolio as of the dates indicated:

(Dollars in thousands)		September 30, 2023			June 30, 2023			September 30, 2022
Debt securities, available for sale		$	2,746,729		$	2,797,940		$	2,918,830
Equity securities			26,478			26,698			24,864
Investment securities, at fair value			2,773,207			2,824,638			2,943,694
Debt securities, held to maturity			1,178,370			1,258,560			886,294
Total investment securities portfolio		$	3,951,577		$	4,083,198		$	3,829,988

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 September 30, 2023, our AFS debt securities portfolio had a spot yield of 5.43%, an effective duration of approximately 1.6 years, and approximately 48% are variable rate. Additionally, 64% of our AFS securities portfolio was AAA rated at September 30, 2023.

At September 30, 2023, our HTM debt securities portfolio represented only 5.4% of our total assets at September 30, 2023, had a spot yield of 4.34% and an effective duration of approximately 3.0 years. Additionally, at September 30, 2023, approximately 38% of our HTM securities were AAA rated and 55% were credit enhanced asset backed securities with no current expectation of credit losses.

Deposits

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

(Dollars in thousands)		September 30, 2023			% of Total			June 30, 2023			% of Total			September 30, 2022			% of Total
Demand, non-interest bearing		$	4,758,682		26.2	%		$	4,490,198		25.0	%		$	2,993,793		17.1	%
Demand, interest bearing			5,824,410		32.0				5,551,037		30.9				7,124,663		40.7
Total demand deposits			10,583,092		58.2				10,041,235		55.9				10,118,456		57.8
Savings			1,118,353		6.1				1,048,229		5.8				592,002		3.4
Money market			2,499,593		13.7				2,004,264		11.2				4,913,967		28.0
Time deposits			3,994,326		22.0				4,856,703		27.1				1,898,013		10.8
Total deposits		$	18,195,364		100.0	%		$	17,950,431		100.0	%		$	17,522,438		100.0	%

Total deposits increased $244.9 million, or 1.4%, to $18.2 billion at September 30, 2023 as compared to the prior quarter. Importantly, non-interest bearing demand deposits increased $268.5 million, or 6.0%, to $4.8 billion. Money market deposits increased $495.3 million, or 24.7%, to $2.5 billion, interest bearing demand deposits increased $273.4 million, or 4.9%, to $5.8 billion, and savings deposits increased $70.1 million, or 6.7%, to $1.1 billion. These increases were offset in part by a decrease in time deposits of $862.4 million, or 17.8%, to $4.0 billion. The total average cost of deposits increased by 13 basis points to 3.24% in Q3 2023 from 3.11% in the prior quarter largely driven by the increase in market interest rates during the third quarter. Total estimated uninsured deposits was $4.1 billion¹, or 22% of total deposits (inclusive of accrued interest) at September 30, 2023. We are also highly focused on total deposits with contractual term to manage our liquidity profile and the funding of loans and securities.

Total deposits increased $672.9 million, or 3.8%, to $18.2 billion at September 30, 2023 as compared to a year ago. Non-interest bearing demand deposits increased $1.8 billion, or 59.0%, to $4.8 billion, time deposits increased $2.1 billion to $4.0 billion and savings deposits increased $526.4 million, or 88.9%, to $1.1 billion. These increases were offset in part by decreases in money market deposits of $2.4 billion, or 49.1%, to $2.5 billion and interest bearing demand deposits of $1.3 billion, or 18.3%, to $5.8 billion. The total average cost of deposits increased by 176 basis points to 3.24% in Q3 2023 from 1.48% in the prior year primarily due to higher market interest rates and a shift in deposit mix.

____________________
1		Uninsured deposits (estimate) of $4.8 billion to be reported on the Bank's call report, less state and municipal deposits of $591.3 million collateralized by standby letters of credit from the FHLB and from our affiliates of $99.2 million.

Borrowings

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

(Dollars in thousands)		September 30, 2023			June 30, 2023			September 30, 2022
Federal funds purchased		$	—		$	—		$	365,000
FHLB advances			1,529,839			2,046,142			500,000
Senior notes			123,775			123,710			123,515
Subordinated debt			182,161			182,091			181,882
Total borrowings		$	1,835,775		$	2,351,943		$	1,170,397

Total borrowings decreased $516.2 million, or 21.9%, to $1.8 billion at September 30, 2023 as compared to the prior quarter. This decrease primarily resulted from the repayment of $510 million in callable FHLB advances. As of September 30, 2023, Customers' borrowing capacity with the FRB and FHLB was approximately $8.4 billion, of which $1.5 billion of available capacity was utilized in borrowings and $599.4 million was utilized to collateralize state and municipal deposits.

Total borrowings increased $665.4 million, or 56.9%, to $1.8 billion at September 30, 2023 as compared to a year ago. This increase primarily resulted from an increase in FHLB advances to ensure ample cash on hand given the heightened liquidity risk in the banking system, particularly among regional banks since early March 2023, net of repayments of $510 million in callable FHLB advances in Q3 2023 and federal funds purchased.

Capital

The following table presents certain capital amounts and ratios as of the dates indicated:

(Dollars in thousands except per share data)		September 30, 2023				June 30, 2023				September 30, 2022
Customers Bancorp, Inc.
Common Equity		$	1,423,813			$	1,318,858			$	1,249,137
Tangible Common Equity*		$	1,420,184			$	1,315,229			$	1,245,508
Common Equity to Total Assets			6.5	%			6.0	%			6.1	%
Tangible Common Equity to Tangible Assets*			6.5	%			6.0	%			6.1	%
Book Value per common share		$	45.47			$	42.16			$	38.46
Tangible Book Value per common share*		$	45.36			$	42.04			$	38.35
Common equity Tier 1 (CET 1) capital ratio (1)			11.3	%			10.3	%			9.8	%
Total risk based capital ratio (1)			14.3	%			13.2	%			12.5	%
(1) Regulatory capital ratios as of September 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 $105.0 million to $1.4 billion, and tangible common equity* increased $105.0 million to $1.4 billion, at September 30, 2023 compared to the prior quarter, respectively, primarily from earnings of $83.0 million and decreased unrealized losses on investment securities of $18.4 million (net of taxes) deferred in accumulated other comprehensive income ("AOCI"). Similarly, book value per common share increased to $45.47 from $42.16, and tangible book value per common share* increased to $45.36 from $42.04, at September 30, 2023 and June 30, 2023, respectively.

Customers Bancorp's common equity increased $174.7 million to $1.4 billion, and tangible common equity* increased $174.7 million to $1.4 billion, at September 30, 2023 compared to a year ago, respectively, primarily from earnings of $202.8 million and decreased unrealized losses on investment securities in AOCI of $6.3 million (net of taxes), partially offset by $45.1 million of common share repurchases. Similarly, book value per common share increased to $45.47 from $38.46, and tangible book value per common share* increased to $45.36 from $38.35, at September 30, 2023 and September 30, 2022, respectively.

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 11.3%, 14.3%, 6.5%, and 6.5%, respectively, at September 30, 2023.

At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At September 30, 2023, Tier 1 capital (estimate) and total risk based capital (estimate) were 13.0% and 14.5%, respectively.

“Even though we remain well capitalized by all regulatory measures, we are committed to maintaining our CET 1 capital ratio between 11.0% - 11.5% at year-end 2023. In this environment, we will continue to be selective on new loan production to ensure the strength of our balance sheet and further improve our strong capital ratios,” stated Jay Sidhu.

Key Profitability Trends

Net Interest Income

Net interest income totaled $199.8 million in Q3 2023, an increase of $34.5 million from Q2 2023, primarily due to higher interest income from variable rate lower credit risk specialty lending verticals of $35.9 million, which included the acquired Venture Banking portfolio, interest earning deposits of $16.2 million maintained in response to heightened liquidity risk in the banking system, particularly among regional banks since early March 2023, and investment securities of $6.2 million, reflecting higher average balance and market interest rates. These increases were partially offset by lower interest income on consumer installment loans of $13.0 million reflecting the impact of the sales transactions that occurred late in Q2 2023. In addition, interest expense on deposits and other borrowings increased by $11.7 million in Q3 2023 largely resulting from higher market interest rates.

“We experienced robust net interest income growth in the third quarter due to strong core business performance and outsized discount accretion recognized on the acquired loan portfolio from the FDIC. To provide some context on the outsized discount accretion, Venture Banking loans have more frequent financing needs than traditional commercial loans given ongoing capital raises and other activities of the companies. These activities were essentially paused between March and our acquisition of the loan portfolio in June. When our new Venture Banking team members were fully onboarded in July, they began addressing this backlog in earnest. We estimate approximately $27 million of interest income in Q3 2023 was attributable to outsized discount accretion,” stated Customers Bancorp President Sam Sidhu.

Net interest income totaled $199.8 million in Q3 2023, an increase of $40.7 million from Q3 2022. This increase was due to higher interest income of $140.4 million resulting from increased average balance of interest earning assets of $1.5 billion, higher market interest rates on variable rate loans, investments and interest earning deposits, and discount accretion on the acquired Venture Banking portfolio, offset in part by higher interest expenses on deposits and other borrowings of $99.7 million primarily resulting from increased market interest rates and higher average balances of other borrowings. Interest-earning asset growth was primarily driven by increases in interest earning deposits and investments, C&I loans and leases, mostly in the variable rate lower credit risk specialty lending verticals, offset in part by decreases in PPP loans, as the PPP program was substantially completed in Q1 2023, consumer installment loans and commercial loans to mortgage companies. Total consumer installment loans decreased in Q3 2023 as compared to Q3 2022, as installment loans held for investment decreased primarily for risk management purposes and implementation of our held-for-sale strategy.

Non-Interest Income

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

		Three Months Ended								Increase (Decrease)				Three Months Ended								Increase (Decrease)
(Dollars in thousands)		September 30, 2023				June 30, 2023								September 30, 2023				September 30, 2022
Commercial lease income		$	8,901			$	8,917			$	(16	)		$	8,901			$	7,097			$	1,804
Loan fees			6,029				4,271				1,758				6,029				3,008				3,021
Bank-owned life insurance			1,973				4,997				(3,024	)			1,973				3,449				(1,476	)
Mortgage warehouse transactional fees			1,018				1,376				(358	)			1,018				1,545				(527	)
Gain (loss) on sale of SBA and other loans			(348	)			(761	)			413				(348	)			106				(454	)
Loss on sale of capital call lines of credit			—				(5,037	)			5,037				—				—				—
Loss on sale of consumer installment loans			—				—				—				—				(23,465	)			23,465
Net gain (loss) on sale of investment securities			(429	)			—				(429	)			(429	)			(2,135	)			1,706
Other			631				2,234				(1,603	)			631				1,378				(747	)
Total non-interest income		$	17,775			$	15,997			$	1,778			$	17,775			$	(9,017	)		$	26,792

Non-interest income totaled $17.8 million for Q3 2023, an increase of $1.8 million compared to Q2 2023. The increase was primarily due to a loss of $5.0 million realized from the sale of non-strategic short-term syndicated capital call lines of credit within our Specialty Lending vertical that the Bank exited completely in Q2 2023 offset in part by decreases in death benefits paid by insurance carriers under bank-owned life insurance policies of $3.0 million.

Non-interest income totaled $17.8 million for Q3 2023, an increase of $26.8 million compared to Q3 2022. The increase was primarily due to a loss of $23.5 million realized from the sale of $500 million of consumer installment loans in Q3 2022 and an increase in loan fees of $3.0 million resulting from increased servicing-related revenue and unused line of credit fees.

Non-Interest Expense

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

		Three Months Ended						Increase (Decrease)				Three Months Ended						Increase (Decrease)
(Dollars in thousands)		September 30, 2023			June 30, 2023							September 30, 2023			September 30, 2022
Salaries and employee benefits		$	33,845		$	33,120		$	725			$	33,845		$	31,230		$	2,615
Technology, communication and bank operations			15,667			16,407			(740	)			15,667			19,588			(3,921	)
Commercial lease depreciation			7,338			7,328			10				7,338			5,966			1,372
Professional services			8,569			9,192			(623	)			8,569			6,269			2,300
Loan servicing			3,858			4,777			(919	)			3,858			3,851			7
Occupancy			2,471			2,519			(48	)			2,471			2,605			(134	)
FDIC assessments, non-income taxes and regulatory fees			8,551			9,780			(1,229	)			8,551			2,528			6,023
Advertising and promotion			650			546			104				650			762			(112	)
Legal settlement expense			4,096			—			4,096				4,096			—			4,096
Other			4,421			5,628			(1,207	)			4,421			3,399			1,022
Total non-interest expense		$	89,466		$	89,297		$	169			$	89,466		$	76,198		$	13,268

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 $89.5 million in Q3 2023, an increase of $0.2 million compared to Q2 2023. The increase was primarily attributable to $4.1 million of expenses from a settlement with a third party PPP service provider and an increase of $0.7 million in salaries and employee benefits resulting from the onboarding of the Venture Banking team. These increases were partially offset by decreases of $1.2 million in FDIC assessments, non-income taxes and regulatory fees, $1.2 million in other expenses primarily due to lower provision for operating losses, $0.9 million in loan servicing from loan portfolios serviced by third parties, $0.7 million in technology, communication and bank operations mostly due to lower fees paid to BM Technologies and $0.6 million in professional fees.

Non-interest expenses totaled $89.5 million in Q3 2023, an increase of $13.3 million compared to Q3 2022. The increase was primarily attributable to $4.1 million of expenses from a settlement with a third party PPP service provider, and increases of $6.0 million in FDIC assessments, non-income taxes and regulatory fees resulting from higher FDIC assessment rates, $2.6 million in salaries and employee benefits primarily due to headcount, annual merit increases, incentives and stock awards, $2.3 million in professional fees mostly for technology, compliance and risk management, $1.4 million in commercial lease depreciation from growth and $1.0 million in other expenses. These increases were partially offset by a decrease of $3.9 million in deposit servicing-related expenses mostly due to lower servicing fees and the discontinuation of interchange maintenance fees paid to BM Technologies offset by higher fees paid for software as a service.

Taxes

Income tax expense increased by $2.7 million to $23.5 million in Q3 2023 from $20.8 million in Q2 2023 primarily due to higher pre-tax income, partially offset by tax expense of $4.1 million on surrendered bank-owned life insurance policies recognized in Q2 2023 and increased income tax credits.

Income tax expense increased by $5.6 million to $23.5 million in Q3 2023 from $17.9 million in Q3 2022 primarily due to higher pre-tax income, partially offset by increased income tax credits.

The effective tax rate for Q3 2023 was 21%. Customers expects the full-year 2023 effective tax rate to be approximately 22% to 24%.

Outlook

“Looking forward, our strategy and risk management principles will remain unchanged. We’re focused on managing risk, strengthening our deposit franchise, improving our profitability and increasing our capital ratios. Our deposits will be relatively flat with continued improvement in the quality of deposits, reducing higher cost wholesale deposits with lower cost core deposits. Following the robust 3.70% NIM in Q3 2023 which was boosted by the outsized discount accretion, we expect a normalization of NIM to roughly 3.20%-3.25% in Q4 2023. Core EPS (excluding PPP)* remains on track for, and will likely well exceed, our target of $6.00 per diluted share with a core return on common equity* of over 15%. Operating efficiency has and will continue to be a differentiator of our business model, and we will continue to only make investments that generate long-term positive operating leverage. We remain committed to maintaining a CET 1 ratio between 11.0%-11.5% at year-end 2023 and have also achieved the tangible book value per share target of $45.00, inclusive of the impact of AOCI, a full quarter early. We are committed to preserving superior credit quality, managing interest rate risk, maintaining robust liquidity, further improving our capital ratios and generating positive operating leverage,” concluded Sam Sidhu.

____________________

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

Webcast
Date:		Friday, October 27, 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 3rd Quarter Earnings Webcast.

You may submit questions in advance of the live webcast by emailing our Communications Director, David Patti at dpatti@customersbank.com; questions may also be asked during the webcast through the webcast application.

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

Institutional Background

Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s top-performing banking companies with about $22.0 billion in assets, making it one of the 80 largest bank holding companies in the US. Through its primary subsidiary, Customers Bank, commercial and consumer clients benefit from a full suite of technology-enabled tailored product experiences delivered by best-in-class customer service. In addition to traditional lines such as C&I lending, commercial real estate lending, and multifamily lending, Customers Bank also provides a number of national corporate banking services to Specialty Lending clients. Major accolades include:

• #5 in top-performing banks with assets between $10 billion and $50 billion in 2023 per American Banker list;
• #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 U.S. economy and customer behavior, the impact that changes in the economy have on the performance of our loan and lease portfolio, the market value of our investment securities, the continued success and acceptance of our blockchain payments system, the demand for our products and services and the availability of sources of funding, the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that affect market interest rates and the money supply, actions that we and our customers take in response to these developments and the effects such actions have on our operations, products, services and customer relationships, higher inflation and its impacts, and the effects of any changes in accounting standards or policies. Customers Bancorp, Inc. cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Customers Bancorp, Inc.’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K for the year ended December 31, 2022, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, including any amendments thereto, that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Customers Bancorp, Inc. does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Customers Bancorp, Inc. or by or on behalf of Customers Bank, except as may be required under applicable law.

Q3 2023 Overview

The following table presents a summary of key earnings and performance metrics for the quarter ended September 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)		Q3				Q2				Q1				Q4				Q3				Nine Months Ended September 30,
			2023				2023				2023				2022				2022				2023				2022
GAAP Profitability Metrics:
Net income available to common shareholders		$	82,953			$	44,007			$	50,265			$	25,623			$	61,364			$	177,225			$	192,779
Per share amounts:
Earnings per share - basic		$	2.65			$	1.41			$	1.58			$	0.79			$	1.89			$	5.63			$	5.89
Earnings per share - diluted		$	2.58			$	1.39			$	1.55			$	0.77			$	1.85			$	5.53			$	5.72
Book value per common share (1)		$	45.47			$	42.16			$	41.08			$	39.08			$	38.46			$	45.47			$	38.46
CUBI stock price (1)		$	34.45			$	30.26			$	18.52			$	28.34			$	29.48			$	34.45			$	29.48
CUBI stock price as % of book value (1)			76	%			72	%			45	%			73	%			77	%			76	%			77	%
Average shares outstanding - basic			31,290,581				31,254,125				31,819,203				32,413,459				32,455,814				31,452,700				32,706,652
Average shares outstanding - diluted			32,175,084				31,591,142				32,345,017				33,075,422				33,226,607				32,036,459				33,706,864
Shares outstanding (1)			31,311,254				31,282,318				31,239,750				32,373,697				32,475,502				31,311,254				32,475,502
Return on average assets ("ROAA")			1.57	%			0.88	%			1.03	%			0.55	%			1.24	%			1.17	%			1.34	%
Return on average common equity ("ROCE")			23.97	%			13.22	%			16.00	%			8.05	%			19.33	%			17.84	%			20.58	%
Net interest margin, tax equivalent			3.70	%			3.15	%			2.96	%			2.67	%			3.16	%			3.28	%			3.38	%
Efficiency ratio			41.01	%			49.25	%			47.71	%			49.20	%			50.00	%			45.62	%			43.46	%
Non-GAAP Profitability Metrics (2):
Core earnings		$	83,294			$	52,163			$	51,143			$	39,368			$	82,270			$	186,600			$	217,047
Adjusted pre-tax pre-provision net income		$	128,564			$	96,833			$	89,282			$	81,377			$	100,994			$	314,679			$	319,335
Per share amounts:
Core earnings per share - diluted		$	2.59			$	1.65			$	1.58			$	1.19			$	2.48			$	5.82			$	6.44
Tangible book value per common share (1)		$	45.36			$	42.04			$	40.96			$	38.97			$	38.35			$	45.36			$	38.35
CUBI stock price as % of tangible book value (1)			76	%			72	%			45	%			73	%			77	%			76	%			77	%
Core ROAA			1.57	%			1.03	%			1.05	%			0.81	%			1.64	%			1.22	%			1.50	%
Core ROCE			24.06	%			15.67	%			16.28	%			12.36	%			25.91	%			18.79	%			23.17	%
Adjusted ROAA - pre-tax and pre-provision			2.32	%			1.79	%			1.72	%			1.56	%			1.95	%			1.95	%			2.14	%
Adjusted ROCE - pre-tax and pre-provision			36.04	%			28.01	%			27.33	%			24.59	%			31.01	%			30.59	%			33.40	%
Net interest margin, tax equivalent, excluding PPP loans			3.75	%			3.20	%			2.80	%			2.87	%			3.18	%			3.27	%			3.27	%
Core efficiency ratio			41.04	%			47.84	%			47.09	%			49.12	%			42.57	%			45.03	%			41.23	%
Asset Quality:
Net charge-offs		$	17,498			$	15,564			$	18,651			$	27,164			$	18,497			$	51,713			$	39,204
Annualized net charge-offs to average total loans and leases			0.50	%			0.42	%			0.49	%			0.70	%			0.47	%			0.47	%			0.36	%
Non-performing loans ("NPLs") to total loans and leases (1)			0.22	%			0.20	%			0.21	%			0.19	%			0.18	%			0.22	%			0.18	%
Reserves to NPLs (1)			466.11	%			494.46	%			405.56	%			425.95	%			466.34	%			466.11	%			466.34	%
Non-performing assets ("NPAs") to total assets			0.14	%			0.13	%			0.15	%			0.15	%			0.14	%			0.14	%			0.14	%
Customers Bank Capital Ratios (3):
Common equity Tier 1 capital to risk-weighted assets			13.0	%			11.96	%			11.31	%			11.21	%			11.42	%			13.0	%			11.42	%
Tier 1 capital to risk-weighted assets			13.0	%			11.96	%			11.31	%			11.21	%			11.42	%			13.0	%			11.42	%
Total capital to risk-weighted assets			14.5	%			13.38	%			12.64	%			12.40	%			12.65	%			14.5	%			12.65	%
Tier 1 capital to average assets (leverage ratio)			8.3	%			8.00	%			8.09	%			8.15	%			8.10	%			8.3	%			8.10	%
(1) Metric is a spot balance for the last day of each quarter presented.
(2) Customers' reasons for the use of these non-GAAP measures and a detailed reconciliation between the non-GAAP measures and the comparable GAAP amounts are included at the end of this document.
(3) Regulatory capital ratios are estimated for Q3 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 $61.6 million will be phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of September 30, 2023, our regulatory capital ratios reflected 50%, or $30.8 million, benefit associated with the CECL transition provisions.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Dollars in thousands, except per share data)																					Nine Months Ended
		Q3				Q2				Q1			Q4				Q3				September 30,
			2023				2023			2023				2022				2022				2023				2022
Interest income:
Loans and leases		$	271,107			$	241,745			$	244,212		$	217,471			$	200,438			$	757,064			$	526,478
Investment securities			54,243				48,026				47,316			42,953				30,546				149,585				76,283
Interest earning deposits			43,800				27,624				10,395			6,754				2,949				81,819				4,198
Loans held for sale			4,664				11,149				11,701			1,269				19				27,514				95
Other			2,526				1,616				1,321			1,200				1,964				5,463				8,672
Total interest income			376,340				330,160				314,945			269,647				235,916				1,021,445				615,726
Interest expense:
Deposits			145,825				136,375				143,930			124,366				65,380				426,130				101,873
FHLB advances			26,485				24,285				10,370			4,464				4,684				61,140				7,000
FRB advances			—				—				6,286			—				—				6,286				—
Subordinated debt			2,689				2,689				2,689			2,688				2,689				8,067				8,067
Other borrowings			1,568				1,540				1,771			2,992				4,131				4,879				10,203
Total interest expense			176,567				164,889				165,046			134,510				76,884				506,502				127,143
Net interest income			199,773				165,271				149,899			135,137				159,032				514,943				488,583
Provision (benefit) for credit losses			17,856				23,629				19,603			28,216				(7,994	)			61,088				31,850
Net interest income after provision (benefit) for credit losses			181,917				141,642				130,296			106,921				167,026				453,855				456,733
Non-interest income:
Commercial lease income			8,901				8,917				9,326			8,135				7,097				27,144				19,584
Loan fees			6,029				4,271				3,990			4,017				3,008				14,290				8,171
Bank-owned life insurance			1,973				4,997				2,647			1,975				3,449				9,617				13,722
Mortgage warehouse transactional fees			1,018				1,376				1,074			1,295				1,545				3,468				5,443
Gain (loss) on sale of SBA and other loans			(348	)			(761	)			—			—				106				(1,109	)			3,155
Loss on sale of capital call lines of credit			—				(5,037	)			—			—				—				(5,037	)			—
Loss on sale of consumer installment loans			—				—				—			—				(23,465	)			—				(23,465	)
Net gain (loss) on sale of investment securities			(429	)			—				—			(16,937	)			(2,135	)			(429	)			(6,227	)
Legal settlement gain			—				—				—			7,519				—				—				—
Other			631				2,234				1,084			1,341				1,378				3,949				4,544
Total non-interest income			17,775				15,997				18,121			7,345				(9,017	)			51,893				24,927
Non-interest expense:
Salaries and employee benefits			33,845				33,120				32,345			29,194				31,230				99,310				83,171
Technology, communication and bank operations			15,667				16,407				16,589			18,604				19,588				48,663				66,394
Commercial lease depreciation			7,338				7,328				7,875			6,518				5,966				22,541				16,460
Professional services			8,569				9,192				7,596			6,825				6,269				25,357				20,640
Loan servicing			3,858				4,777				4,661			4,460				3,851				13,296				10,563
Occupancy			2,471				2,519				2,760			3,672				2,605				7,750				9,934
FDIC assessments, non-income taxes and regulatory fees			8,551				9,780				2,728			2,339				2,528				21,059				6,530
Advertising and promotion			650				546				1,049			1,111				762				2,245				1,430
Legal settlement expense			4,096				—				—			—				—				4,096				—
Other			4,421				5,628				4,530			5,696				3,399				14,579				11,088
Total non-interest expense			89,466				89,297				80,133			78,419				76,198				258,896				226,210
Income before income tax expense			110,226				68,342				68,284			35,847				81,811				246,852				255,450
Income tax expense			23,470				20,768				14,563			7,136				17,899				58,801				56,127
Net income			86,756				47,574				53,721			28,711				63,912				188,051				199,323
Preferred stock dividends			3,803				3,567				3,456			3,088				2,548				10,826				6,544
Net income available to common shareholders		$	82,953			$	44,007			$	50,265		$	25,623			$	61,364			$	177,225			$	192,779
Basic earnings per common share		$	2.65			$	1.41			$	1.58		$	0.79			$	1.89			$	5.63			$	5.89
Diluted earnings per common share			2.58				1.39				1.55			0.77				1.85				5.53				5.72

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - UNAUDITED
(Dollars in thousands)
		September 30,				June 30,				March 31,				December 31,				September 30,
			2023				2023				2023				2022				2022
ASSETS
Cash and due from banks		$	68,288			$	54,127			$	77,251			$	58,025			$	41,520
Interest earning deposits			3,351,686				3,101,097				1,969,434				397,781				362,945
Cash and cash equivalents			3,419,974				3,155,224				2,046,685				455,806				404,465
Investment securities, at fair value			2,773,207				2,824,638				2,926,969				2,987,500				2,943,694
Investment securities held to maturity			1,178,370				1,258,560				870,294				840,259				886,294
Loans held for sale			150,368				78,108				424,057				328,312				5,224
Loans receivable, mortgage warehouse, at fair value			962,566				1,006,268				1,247,367				1,323,312				1,569,090
Loans receivable, PPP			137,063				188,763				246,258				998,153				1,154,632
Loans and leases receivable			12,463,485				12,637,768				13,145,352				13,144,894				12,607,742
Allowance for credit losses on loans and leases			(139,213	)			(139,656	)			(130,281	)			(130,924	)			(130,197	)
Total loans and leases receivable, net of allowance for credit losses on loans and leases			13,423,901				13,693,143				14,508,696				15,335,435				15,201,267
FHLB, Federal Reserve Bank, and other restricted stock			126,098				126,240				124,733				74,196				64,112
Accrued interest receivable			123,984				119,501				123,754				123,374				107,621
Bank premises and equipment, net			7,789				8,031				8,581				9,025				6,610
Bank-owned life insurance			291,670				290,322				339,607				338,441				336,130
Goodwill and other intangibles			3,629				3,629				3,629				3,629				3,629
Other assets			358,162				471,169				374,609				400,135				408,575
Total assets		$	21,857,152			$	22,028,565			$	21,751,614			$	20,896,112			$	20,367,621
LIABILITIES AND SHAREHOLDERS' EQUITY
Demand, non-interest bearing deposits		$	4,758,682			$	4,490,198			$	3,487,517			$	1,885,045			$	2,993,793
Interest bearing deposits			13,436,682				13,460,233				14,236,100				16,271,908				14,528,645
Total deposits			18,195,364				17,950,431				17,723,617				18,156,953				17,522,438
Federal funds purchased			—				—				—				—				365,000
FHLB advances			1,529,839				2,046,142				2,052,143				800,000				500,000
Other borrowings			123,775				123,710				123,645				123,580				123,515
Subordinated debt			182,161				182,091				182,021				181,952				181,882
Accrued interest payable and other liabilities			264,406				269,539				249,168				230,666				287,855
Total liabilities			20,295,545				20,571,913				20,330,594				19,493,151				18,980,690
Preferred stock			137,794				137,794				137,794				137,794				137,794
Common stock			35,330				35,301				35,258				35,012				34,948
Additional paid in capital			559,346				555,737				552,255				551,721				549,066
Retained earnings			1,101,359				1,018,406				974,399				924,134				898,511
Accumulated other comprehensive income (loss), net			(149,812	)			(168,176	)			(156,276	)			(163,096	)			(156,126	)
Treasury stock, at cost			(122,410	)			(122,410	)			(122,410	)			(82,604	)			(77,262	)
Total shareholders' equity			1,561,607				1,456,652				1,421,020				1,402,961				1,386,931
Total liabilities and shareholders' equity		$	21,857,152			$	22,028,565			$	21,751,614			$	20,896,112			$	20,367,621

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
(Dollars in thousands)
		Three Months Ended
		September 30, 2023									June 30, 2023									September 30, 2022
		Average Balance			Interest Income or Expense			Average Yield or Cost (%)			Average Balance			Interest Income or Expense			Average Yield or Cost (%)			Average Balance			Interest Income or Expense			Average Yield or Cost (%)
Assets
Interest earning deposits		$	3,211,753		$	43,800		5.41	%		$	2,150,154		$	27,624		5.15	%		$	528,001		$	2,949		2.22	%
Investment securities (1)			4,240,116			54,243		5.12	%			3,949,732			48,026		4.86	%			3,770,922			30,546		3.24	%
Loans and leases:
Commercial & industrial:
Specialty lending loans and leases (2)			5,717,252			157,671		10.94	%			5,832,485			121,779		8.37	%			5,064,730			64,753		5.07	%
Other commercial & industrial loans (2)			1,613,614			28,012		6.89	%			1,672,667			26,028		6.24	%			1,585,136			18,794		4.70	%
Commercial loans to mortgage companies			1,159,698			16,916		5.79	%			1,300,496			19,606		6.05	%			1,623,624			17,092		4.18	%
Multifamily loans			2,141,384			21,292		3.94	%			2,181,617			21,095		3.88	%			2,206,953			20,427		3.67	%
Loans receivable, PPP			166,164			604		1.44	%			207,127			1,633		3.16	%			1,349,403			14,666		4.31	%
Non-owner occupied commercial real estate loans			1,425,831			21,208		5.90	%			1,428,086			19,877		5.58	%			1,372,244			15,595		4.51	%
Residential mortgages			528,022			5,965		4.48	%			535,739			5,735		4.28	%			513,694			5,008		3.87	%
Installment loans			1,147,069			24,103		8.34	%			1,684,215			37,141		8.84	%			1,938,199			44,122		9.03	%
Total loans and leases (3)			13,899,034			275,771		7.87	%			14,842,432			252,894		6.83	%			15,653,983			200,457		5.08	%
Other interest-earning assets			134,416			2,526		7.45	%			131,362			1,616		4.93	%			68,549			1,964		11.37	%
Total interest-earning assets			21,485,319			376,340		6.96	%			21,073,680			330,160		6.28	%			20,021,455			235,916		4.68	%
Non-interest-earning assets			492,691									581,055									492,911
Total assets		$	21,978,010								$	21,654,735								$	20,514,366
Liabilities
Interest checking accounts		$	5,758,215		$	58,637		4.04	%		$	5,309,775		$	49,862		3.77	%		$	6,669,787		$	33,685		2.00	%
Money market deposit accounts			2,181,184			22,983		4.18	%			1,978,546			19,678		3.99	%			5,789,991			24,348		1.67	%
Other savings accounts			1,077,298			11,582		4.27	%			997,205			9,839		3.96	%			625,908			1,818		1.15	%
Certificates of deposit			4,466,522			52,623		4.67	%			5,020,205			56,996		4.55	%			1,141,970			5,529		1.92	%
Total interest-bearing deposits (4)			13,483,219			145,825		4.29	%			13,305,731			136,375		4.11	%			14,227,656			65,380		1.82	%
Federal funds purchased			—			—		—	%			—			—		—	%			513,011			2,871		2.22	%
Borrowings			2,328,955			30,742		5.24	%			2,357,981			28,514		4.85	%			874,497			8,633		3.92	%
Total interest-bearing liabilities			15,812,174			176,567		4.43	%			15,663,712			164,889		4.22	%			15,615,164			76,884		1.95	%
Non-interest-bearing deposits (4)			4,347,977									4,258,711									3,245,963
Total deposits and borrowings			20,160,151					3.48	%			19,922,423					3.32	%			18,861,127					1.62	%
Other non-interest-bearing liabilities			306,822									259,111									255,735
Total liabilities			20,466,973									20,181,534									19,116,862
Shareholders' equity			1,511,037									1,473,201									1,397,504
Total liabilities and shareholders' equity		$	21,978,010								$	21,654,735								$	20,514,366
Net interest income						199,773									165,271									159,032
Tax-equivalent adjustment						405									390									334
Net interest earnings					$	200,178								$	165,661								$	159,366
Interest spread								3.48	%								2.96	%								3.06	%
Net interest margin								3.70	%								3.14	%								3.16	%
Net interest margin tax equivalent								3.70	%								3.15	%								3.16	%
Net interest margin tax equivalent excl. PPP (5)								3.75	%								3.20	%								3.18	%
(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 3.24%, 3.11% and 1.48% for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively.
(5) Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, presented to approximate interest income as a taxable asset and excluding net interest income from PPP loans and related borrowings, along with the related PPP loan balances and PPP fees receivable from interest-earning assets. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, 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 U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED (CONTINUED)
(Dollars in thousands)
		Nine Months Ended
		September 30, 2023									September 30, 2022
		Average Balance			Interest Income or Expense			Average Yield or Cost (%)			Average Balance			Interest Income or Expense			Average Yield or Cost (%)
Assets
Interest earning deposits		$	2,100,435		$	81,819		5.21	%		$	595,305		$	4,197		0.94	%
Investment securities (1)			4,074,464			149,585		4.90	%			3,969,809			76,283		2.56	%
Loans and leases:
Commercial & industrial:
Specialty lending loans and leases (2)			5,748,053			383,138		8.91	%			3,963,180			127,304		4.29	%
Other commercial & industrial loans (2)			1,663,494			79,610		6.40	%			1,496,772			46,768		4.18	%
Commercial loans to mortgage companies			1,240,403			53,934		5.81	%			1,785,495			46,713		3.50	%
Multifamily loans			2,176,294			62,857		3.86	%			1,863,915			51,506		3.69	%
Loans receivable, PPP			418,194			25,788		8.24	%			1,946,651			72,132		4.95	%
Non-owner occupied commercial real estate loans			1,434,459			61,284		5.71	%			1,331,037			40,551		4.07	%
Residential mortgages			535,502			17,298		4.32	%			482,263			13,586		3.77	%
Installment loans			1,517,632			100,669		8.87	%			1,881,160			128,013		9.10	%
Total loans and leases (3)			14,734,031			784,578		7.12	%			14,750,473			526,573		4.77	%
Other interest-earning assets			119,187			5,463		6.13	%			62,955			8,673		NM (6)
Total interest-earning assets			21,028,117			1,021,445		6.49	%			19,378,542			615,726		4.25	%
Non-interest-earning assets			537,160									526,437
Total assets		$	21,565,277								$	19,904,979
Liabilities
Interest checking accounts		$	6,181,097		$	178,984		3.87	%		$	6,286,224		$	55,059		1.17	%
Money market deposit accounts			2,208,853			63,444		3.84	%			5,128,270			36,545		0.95	%
Other savings accounts			966,539			27,707		3.83	%			732,801			3,359		0.61	%
Certificates of deposit			4,663,548			155,995		4.47	%			710,130			6,910		1.30	%
Total interest-bearing deposits (4)			14,020,037			426,130		4.06	%			12,857,425			101,873		1.06	%
Federal funds purchased			5,055			188		4.97	%			416,344			4,374		1.40	%
Borrowings			2,160,332			80,184		4.96	%			783,644			20,896		3.57	%
Total interest-bearing liabilities			16,185,424			506,502		4.18	%			14,057,413			127,143		1.21	%
Non-interest-bearing deposits (4)			3,642,832									4,206,778
Total deposits and borrowings			19,828,256					3.42	%			18,264,191					0.93	%
Other non-interest-bearing liabilities			271,387									250,783
Total liabilities			20,099,643									18,514,974
Shareholders' equity			1,465,634									1,390,005
Total liabilities and shareholders' equity		$	21,565,277								$	19,904,979
Net interest income						514,943									488,583
Tax-equivalent adjustment						1,170									843
Net interest earnings					$	516,113								$	489,426
Interest spread								3.08	%								3.32	%
Net interest margin								3.27	%								3.37	%
Net interest margin tax equivalent								3.28	%								3.38	%
Net interest margin tax equivalent excl. PPP (5)								3.27	%								3.27	%
(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 3.23% and 0.80% for the nine months ended September 30, 2023 and 2022, respectively.
(5) Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of 26% for the nine months ended September 30, 2023 and 2022, presented to approximate interest income as a taxable asset and excluding net interest income from PPP loans and related borrowings, along with the related PPP loan balances and PPP fees receivable from interest-earning assets. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, 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 U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.
(6) Not meaningful.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED
(Dollars in thousands)
		September 30,			June 30,			March 31,			December 31,			September 30,
		2023			2023			2023			2022			2022
Loans and leases held for investment
Commercial:
Commercial & industrial:
Specialty lending		$	5,422,161		$	5,534,832		$	5,519,176		$	5,412,887		$	5,103,974
Other commercial & industrial			1,115,364			1,052,145			1,168,161			1,135,336			1,064,332
Multifamily			2,130,213			2,151,734			2,195,211			2,213,019			2,263,268
Loans to mortgage companies			1,042,549			1,108,598			1,374,894			1,447,919			1,708,587
Commercial real estate owner occupied			794,815			842,042			895,314			885,339			726,670
Loans receivable, PPP			137,063			188,763			246,258			998,153			1,154,632
Commercial real estate non-owner occupied			1,178,203			1,211,091			1,245,248			1,290,730			1,263,211
Construction			252,588			212,214			188,123			162,009			136,133
Total commercial loans and leases			12,072,956			12,301,419			12,832,385			13,545,392			13,420,807
Consumer:
Residential			483,133			487,199			494,815			497,952			465,772
Manufactured housing			40,129			41,664			43,272			45,076			46,990
Installment:
Personal			629,843			752,470			849,420			964,641			1,056,432
Other			337,053			250,047			419,085			413,298			341,463
Total installment loans			966,896			1,002,517			1,268,505			1,377,939			1,397,895
Total consumer loans			1,490,158			1,531,380			1,806,592			1,920,967			1,910,657
Total loans and leases held for investment		$	13,563,114		$	13,832,799		$	14,638,977		$	15,466,359		$	15,331,464
Loans held for sale
Commercial:
Multifamily		$	—		$	—		$	4,051		$	4,079		$	4,108
Commercial real estate non-owner occupied			—			—			16,000			—			—
Total commercial loans and leases			—			—			20,051			4,079			4,108
Consumer:
Residential			1,005			1,234			821			829			1,116
Installment:
Personal			124,848			76,874			307,336			133,801			—
Other			24,515			—			95,849			189,603			—
Total installment loans			149,363			76,874			403,185			323,404			—
Total consumer loans			150,368			78,108			404,006			324,233			1,116
Total loans held for sale		$	150,368		$	78,108		$	424,057		$	328,312		$	5,224
Total loans and leases portfolio		$	13,713,482		$	13,910,907		$	15,063,034		$	15,794,671		$	15,336,688

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION - UNAUDITED
(Dollars in thousands)
		September 30,			June 30,			March 31,			December 31,			September 30,
		2023			2023			2023			2022			2022
Demand, non-interest bearing		$	4,758,682		$	4,490,198		$	3,487,517		$	1,885,045		$	2,993,793
Demand, interest bearing			5,824,410			5,551,037			5,791,302			8,476,027			7,124,663
Total demand deposits			10,583,092			10,041,235			9,278,819			10,361,072			10,118,456
Savings			1,118,353			1,048,229			924,359			811,798			592,002
Money market			2,499,593			2,004,264			2,019,633			2,734,217			4,913,967
Time deposits			3,994,326			4,856,703			5,500,806			4,249,866			1,898,013
Total deposits		$	18,195,364		$	17,950,431		$	17,723,617		$	18,156,953		$	17,522,438

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)	As of September 30, 2023															As of June 30, 2023															As of September 30, 2022
	Total loans			Non accrual /NPLs			Allowance for credit losses			Total NPLs to total loans			Total reserves to total NPLs			Total loans			Non accrual /NPLs			Allowance for credit losses			Total NPLs to total loans			Total reserves to total NPLs			Total loans			Non accrual /NPLs			Allowance for credit losses			Total NPLs to total loans			Total reserves to total NPLs
Loan type
Commercial & industrial, including specialty lending (1)	$	6,617,508		$	5,767		$	24,986		0.09	%		433.26	%		$	6,689,307		$	4,441		$	29,092		0.07	%		655.08	%		$	6,307,803		$	4,078		$	15,131		0.06	%		371.04	%
Multifamily		2,130,213			—			15,870		—	%		—	%			2,151,734			4,022			15,400		0.19	%		382.89	%			2,263,268			1,158			14,244		0.05	%		1230.05	%
Commercial real estate owner occupied		794,815			7,442			10,363		0.94	%		139.25	%			842,042			3,304			10,215		0.39	%		309.17	%			726,670			2,198			6,220		0.30	%		282.98	%
Commercial real estate non-owner occupied		1,178,203			—			15,819		—	%		—	%			1,211,091			—			13,495		—	%		—	%			1,263,211			—			11,332		—	%		—	%
Construction		252,588			—			3,130		—	%		—	%			212,214			—			2,639		—	%		—	%			136,133			—			1,614		—	%		—	%
Total commercial loans and leases receivable		10,973,327			13,209			70,168		0.12	%		531.21	%			11,106,388			11,767			70,841		0.11	%		602.03	%			10,697,085			7,434			48,541		0.07	%		652.96	%
Residential		483,133			6,559			6,802		1.36	%		103.70	%			487,199			7,306			6,846		1.50	%		93.70	%			465,772			6,438			5,453		1.38	%		84.70	%
Manufactured housing		40,129			2,582			4,080		6.43	%		158.02	%			41,664			2,634			4,338		6.32	%		164.69	%			46,990			2,584			4,482		5.50	%		173.45	%
Installment		966,896			7,299			58,163		0.75	%		796.86	%			1,002,517			6,537			57,631		0.65	%		881.61	%			1,397,895			6,848			71,721		0.49	%		1047.33	%
Total consumer loans receivable		1,490,158			16,440			69,045		1.10	%		419.98	%			1,531,380			16,477			68,815		1.08	%		417.64	%			1,910,657			15,870			81,656		0.83	%		514.53	%
Loans and leases receivable (1)		12,463,485			29,649			139,213		0.24	%		469.54	%			12,637,768			28,244			139,656		0.22	%		494.46	%			12,607,742			23,304			130,197		0.18	%		558.69	%
Loans receivable, PPP		137,063			—			—		—	%		—	%			188,763			—			—		—	%		—	%			1,154,632			—			—		—	%		—	%
Loans receivable, mortgage warehouse, at fair value		962,566			—			—		—	%		—	%			1,006,268			—			—		—	%		—	%			1,569,090			—			—		—	%		—	%
Total loans held for sale		150,368			218			—		0.14	%		—	%			78,108			—			—		—	%		—	%			5,224			4,615			—		88.34	%		—	%
Total portfolio	$	13,713,482		$	29,867		$	139,213		0.22	%		466.11	%		$	13,910,907		$	28,244		$	139,656		0.20	%		494.46	%		$	15,336,688		$	27,919		$	130,197		0.18	%		466.34	%
(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 U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities. Please refer to the reconciliation schedules that follow this table.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED
(Dollars in thousands)
		Q3			Q2				Q1				Q4				Q3				Nine Months Ended September 30,
		2023			2023 (1)				2023				2022				2022				2023				2022
Loan type
Commercial & industrial, including specialty lending		$	2,974		$	258			$	(71	)		$	12,960			$	2,581			$	3,161			$	2,106
Multifamily			1,999			1,448				—				—				—				3,447				1,653
Commercial real estate owner occupied			39			(34	)			—				(2	)			—				5				(49	)
Commercial real estate non-owner occupied			—			266				4,234				972				4,831				4,500				4,982
Construction			—			—				(116	)			(10	)			(10	)			(116	)			(226	)
Residential			13			24				(2	)			7				(13	)			35				(54	)
Installment			12,473			13,602				14,606				13,237				11,108				40,681				30,792
Total net charge-offs (recoveries) from loans held for investment		$	17,498		$	15,564			$	18,651			$	27,164			$	18,497			$	51,713			$	39,204
(1) Excludes $6.2 million of charge-offs for certain PCD loans acquired from the FDIC that were immediately applied against $8.7 million of allowance for credit losses on PCD loans recognized upon the acquisition of the loan portfolio on June 15, 2023. Subsequent recoveries and charge-offs of these PCD loans will be included in the period in which they occur.

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																																Nine Months Ended September 30,
		Q3 2023						Q2 2023						Q1 2023						Q4 2022					Q3 2022							2023						2022
(Dollars in thousands, except per share data)		USD			Per share			USD			Per share			USD			Per share			USD		Per share			USD			Per share				USD			Per share			USD			Per share
GAAP net income to common shareholders		$	82,953		$	2.58		$	44,007		$	1.39		$	50,265		$	1.55		$	25,623	$	0.77		$	61,364		$	1.85			$	177,225		$	5.53		$	192,779		$	5.72
Reconciling items (after tax):
Severance expense			—			—			141			0.00			637			0.02			—		—			1,058			0.03				778			0.02			1,058			0.03
Impairments on fixed assets and leases			—			—			12			0.00			86			0.00			—		—			126			0.00				98			0.00			1,051			0.03
Loss on sale of consumer installment loans			—			—			—			—			—			—			—		—			18,221			0.55				—			—			18,221			0.54
Loss on sale of capital call lines of credit			—			—			3,914			0.12			—			—			—		—			—			—				3,914			0.12			—			—
(Gains) losses on investment securities			492			0.02			49			0.00			(49	)		0.00			13,543		0.41			1,859			0.06				492			0.02			5,383			0.16
Derivative credit valuation adjustment			(151	)		0.00			(101	)		0.00			204			0.01			202		0.01			(358	)		(0.01	)			(48	)		0.00			(1,445	)		(0.04	)
Tax on surrender of bank-owned life insurance policies			—			—			4,141			0.13			—			—			—		—			—			—				4,141			0.13			—			—
Core earnings		$	83,294		$	2.59		$	52,163		$	1.65		$	51,143		$	1.58		$	39,368	$	1.19		$	82,270		$	2.48			$	186,600		$	5.82		$	217,047		$	6.44

																																				Nine Months Ended September 30,
Core Earnings, excluding PPP - Customers Bancorp		Q3 2023							Q2 2023							Q1 2023						Q4 2022							Q3 2022							2023							2022
(Dollars in thousands, except per share data)		USD			Per share				USD			Per share				USD			Per share			USD			Per share				USD			Per share				USD			Per share				USD			Per share
GAAP net income to common shareholders		$	82,953		$	2.58			$	44,007		$	1.39			$	50,265		$	1.55		$	25,623		$	0.77			$	61,364		$	1.85			$	177,225		$	5.53			$	192,779		$	5.72
Less: PPP net income (loss) (after tax)			(11,168	)		(0.35	)			(2,068	)		(0.07	)			9,606			0.30			(5,956	)		(0.18	)			5,846			0.18				(3,630	)		(0.11	)			43,625			1.29
Net income to common shareholders, excluding PPP			94,121			2.93				46,075			1.46				40,659			1.26			31,579			0.95				55,518			1.67				180,855			5.65				149,154			4.43
Reconciling items (after tax):
Severance expense			—			—				141			0.00				637			0.02			—			—				1,058			0.03				778			0.02				1,058			0.03
Impairments on fixed assets and leases			—			—				12			0.00				86			0.00			—			—				126			0.00				98			0.00				1,051			0.03
Loss on sale of consumer installment loans			—			—				—			—				—			—			—			—				18,221			0.55				—			—				18,221			0.54
Loss on sale of capital call lines of credit			—			—				3,914			0.12				—			—			—			—				—			—				3,914			0.12				—			—
(Gains) losses on investment securities			492			0.02				49			0.00				(49	)		0.00			13,543			0.41				1,859			0.06				492			0.02				5,383			0.16
Derivative credit valuation adjustment			(151	)		0.00				(101	)		0.00				204			0.01			202			0.01				(358	)		(0.01	)			(48	)		0.00				(1,445	)		(0.04	)
Tax on surrender of bank-owned life insurance policies			—			—				4,141			0.13				—			—			—			—				—			—				4,141			0.13				—			—
Core earnings, excluding PPP		$	94,462		$	2.94			$	54,231		$	1.72			$	41,537		$	1.28		$	45,324		$	1.37			$	76,424		$	2.30			$	190,230		$	5.93			$	173,422		$	5.15

Core Return on Average Assets - Customers Bancorp																						Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022					2023				2022
GAAP net income		$	86,756			$	47,574			$	53,721			$	28,711			$	63,912			$	188,051			$	199,323
Reconciling items (after tax):
Severance expense			—				141				637				—				1,058				778				1,058
Impairments on fixed assets and leases			—				12				86				—				126				98				1,051
Loss on sale of consumer installment loans			—				—				—				—				18,221				—				18,221
Loss on sale of capital call lines of credit			—				3,914				—				—				—				3,914				—
(Gains) losses on investment securities			492				49				(49	)			13,543				1,859				492				5,383
Derivative credit valuation adjustment			(151	)			(101	)			204				202				(358	)			(48	)			(1,445	)
Tax on surrender of bank-owned life insurance policies			—				4,141				—				—				—				4,141				—
Core net income		$	87,097			$	55,730			$	54,599			$	42,456			$	84,818			$	197,426			$	223,591
Average total assets		$	21,978,010			$	21,654,735			$	21,052,920			$	20,717,362			$	20,514,366			$	21,565,277			$	19,904,979
Core return on average assets			1.57	%			1.03	%			1.05	%			0.81	%			1.64	%			1.22	%			1.50	%

Core Return on Average Assets, excluding PPP - Customers Bancorp																						Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022					2023				2022
GAAP net income		$	86,756			$	47,574			$	53,721			$	28,711			$	63,912			$	188,051			$	199,323
Less: PPP net income (loss) (after tax)			(11,168	)			(2,068	)			9,606				(5,956	)			5,846				(3,630	)			43,625
Net income, excluding PPP			97,924				49,642				44,115				34,667				58,066				191,681				155,698
Reconciling items (after tax):
Severance expense			—				141				637				—				1,058				778				1,058
Impairments on fixed assets and leases			—				12				86				—				126				98				1,051
Loss on sale of consumer installment loans			—				—				—				—				18,221				—				18,221
Loss on sale of capital call lines of credit			—				3,914				—				—				—				3,914				—
(Gains) losses on investment securities			492				49				(49	)			13,543				1,859				492				5,383
Derivative credit valuation adjustment			(151	)			(101	)			204				202				(358	)			(48	)			(1,445	)
Tax on surrender of bank-owned life insurance policies			—				4,141				—				—				—				4,141				—
Core net income, excluding PPP		$	98,265			$	57,798			$	44,993			$	48,412			$	78,972			$	201,056			$	179,966
Average total assets		$	21,978,010			$	21,654,735			$	21,052,920			$	20,717,362			$	20,514,366			$	21,565,277			$	19,904,979
Core return on average assets, excluding PPP			1.77	%			1.07	%			0.87	%			0.93	%			1.53	%			1.25	%			1.21	%

Adjusted Net Income and Adjusted ROAA - Pre-Tax Pre-Provision - Customers Bancorp																						Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022					2023				2022
GAAP net income		$	86,756			$	47,574			$	53,721			$	28,711			$	63,912			$	188,051			$	199,323
Reconciling items:
Income tax expense			23,470				20,768				14,563				7,136				17,899				58,801				56,127
Provision (benefit) for credit losses			17,856				23,629				19,603				28,216				(7,994	)			61,088				31,850
Provision (benefit) for credit losses on unfunded commitments			48				(304	)			280				153				254				24				753
Severance expense			—				182				809				—				1,363				991				1,363
Impairments on fixed assets and leases			—				15				109				—				162				124				1,362
Loss on sale of consumer installment loans			—				—				—				—				23,465				—				23,465
Loss on sale of capital call lines of credit			—				5,037				—				—				—				5,037				—
(Gains) losses on investment securities			626				62				(62	)			16,909				2,394				626				6,965
Derivative credit valuation adjustment			(192	)			(130	)			259				252				(461	)			(63	)			(1,873	)
Adjusted net income - pre-tax pre-provision		$	128,564			$	96,833			$	89,282			$	81,377			$	100,994			$	314,679			$	319,335
Average total assets		$	21,978,010			$	21,654,735			$	21,052,920			$	20,717,362			$	20,514,366			$	21,565,277			$	19,904,979
Adjusted ROAA - pre-tax pre-provision			2.32	%			1.79	%			1.72	%			1.56	%			1.95	%			1.95	%			2.14	%

Adjusted Net Income and Adjusted ROAA - Pre-Tax Pre-Provision, excluding PPP - Customers Bancorp																						Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022					2023				2022
GAAP net income		$	86,756			$	47,574			$	53,721			$	28,711			$	63,912			$	188,051			$	199,323
Less: PPP net income (loss) (after tax)			(11,168	)			(2,068	)			9,606				(5,956	)			5,846				(3,630	)			43,625
Net income, excluding PPP			97,924				49,642				44,115				34,667				58,066				191,681				155,698
Reconciling items:
Income tax expense			23,470				20,768				14,563				7,136				17,899				58,801				56,127
Provision (benefit) for credit losses			17,856				23,629				19,603				28,216				(7,994	)			61,088				31,850
Provision (benefit) for credit losses on unfunded commitments			48				(304	)			280				153				254				24				753
Severance expense			—				182				809				—				1,363				991				1,363
Impairments on fixed assets and leases			—				15				109				—				162				124				1,362
Loss on sale of consumer installment loans			—				—				—				—				23,465				—				23,465
Loss on sale of capital call lines of credit			—				5,037				—				—				—				5,037				—
(Gains) losses on investment securities			626				62				(62	)			16,909				2,394				626				6,965
Derivative credit valuation adjustment			(192	)			(130	)			259				252				(461	)			(63	)			(1,873	)
Adjusted net income - pre-tax pre-provision, excluding PPP		$	139,732			$	98,901			$	79,676			$	87,333			$	95,148			$	318,309			$	275,710
Average total assets		$	21,978,010			$	21,654,735			$	21,052,920			$	20,717,362			$	20,514,366			$	21,565,277			$	19,904,979
Adjusted ROAA - pre-tax pre-provision, excluding PPP			2.52	%			1.83	%			1.53	%			1.67	%			1.84	%			1.97	%			1.85	%

Core Return on Average Common Equity - Customers Bancorp																						Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022					2023				2022
GAAP net income to common shareholders		$	82,953			$	44,007			$	50,265			$	25,623			$	61,364			$	177,225			$	192,779
Reconciling items (after tax):
Severance expense			—				141				637				—				1,058				778				1,058
Impairments on fixed assets and leases			—				12				86				—				126				98				1,051
Loss on sale of consumer installment loans			—				—				—				—				18,221				—				18,221
Loss on sale of capital call lines of credit			—				3,914				—				—				—				3,914				—
(Gains) losses on investment securities			492				49				(49	)			13,543				1,859				492				5,383
Derivative credit valuation adjustment			(151	)			(101	)			204				202				(358	)			(48	)			(1,445	)
Tax on surrender of bank-owned life insurance policies			—				4,141				—				—				—				4,141				—
Core earnings		$	83,294			$	52,163			$	51,143			$	39,368			$	82,270			$	186,600			$	217,047
Average total common shareholders' equity		$	1,373,244			$	1,335,408			$	1,273,780			$	1,263,190			$	1,259,711			$	1,327,841			$	1,252,212
Core return on average common equity			24.06	%			15.67	%			16.28	%			12.36	%			25.91	%			18.79	%			23.17	%

Adjusted ROCE - Pre-Tax Pre-Provision - Customers Bancorp																						Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022					2023				2022
GAAP net income to common shareholders		$	82,953			$	44,007			$	50,265			$	25,623			$	61,364			$	177,225			$	192,779
Reconciling items:
Income tax expense			23,470				20,768				14,563				7,136				17,899				58,801				56,127
Provision (benefit) for credit losses			17,856				23,629				19,603				28,216				(7,994	)			61,088				31,850
Provision (benefit) for credit losses on unfunded commitments			48				(304	)			280				153				254				24				753
Severance expense			—				182				809				—				1,363				991				1,363
Impairments on fixed assets and leases			—				15				109				—				162				124				1,362
Loss on sale of consumer installment loans			—				—				—				—				23,465				—				23,465
Loss on sale of capital call lines of credit			—				5,037				—				—				—				5,037				—
(Gains) losses on investment securities			626				62				(62	)			16,909				2,394				626				6,965
Derivative credit valuation adjustment			(192	)			(130	)			259				252				(461	)			(63	)			(1,873	)
Pre-tax pre-provision adjusted net income available to common shareholders		$	124,761			$	93,266			$	85,826			$	78,289			$	98,446			$	303,853			$	312,791
Average total common shareholders' equity		$	1,373,244			$	1,335,408			$	1,273,780			$	1,263,190			$	1,259,711			$	1,327,841			$	1,252,212
Adjusted ROCE - pre-tax pre-provision			36.04	%			28.01	%			27.33	%			24.59	%			31.01	%			30.59	%			33.40	%

Net Interest Margin, Tax Equivalent, excluding PPP - Customers Bancorp																						Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022					2023				2022
GAAP net interest income		$	199,773			$	165,271			$	149,899			$	135,137			$	159,032			$	514,943			$	488,583
PPP net interest (income) expense			1,381				765				(14,106	)			2,791				(9,632	)			(11,960	)			(63,193	)
Tax-equivalent adjustment			405				390				375				342				334				1,170				843
Net interest income, tax equivalent, excluding PPP		$	201,559			$	166,426			$	136,168			$	138,270			$	149,734			$	504,153			$	426,233
GAAP average total interest earning assets		$	21,485,319			$	21,073,680			$	20,514,677			$	20,211,028			$	20,021,455			$	21,028,117			$	19,378,542
Average PPP loans			(166,164	)			(207,127	)			(889,235	)			(1,065,919	)			(1,349,403	)			(418,194	)			(1,946,651	)
Adjusted average total interest earning assets, excluding PPP		$	21,319,155			$	20,866,553			$	19,625,442			$	19,145,109			$	18,672,052			$	20,609,923			$	17,431,891
Net interest margin, tax equivalent, excluding PPP			3.75	%			3.20	%			2.80	%			2.87	%			3.18	%			3.27	%			3.27	%

Loan Yield, excluding PPP																						Nine Months Ended September 30,
(Dollars in thousands except per share data)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022					2023				2022
Interest income on loans and leases		$	275,771			$	252,894			$	255,913			$	218,740			$	200,457			$	784,578			$	526,573
PPP interest income			(604	)			(1,633	)			(23,551	)			(7,249	)			(14,666	)			(25,788	)			(72,132	)
Interest income on core loans (Loans and leases, excluding PPP)		$	275,167			$	251,261			$	232,362			$	211,491			$	185,791			$	758,790			$	454,441
Average total loans and leases		$	13,899,034			$	14,842,432			$	15,477,973			$	15,388,003			$	15,653,983			$	14,734,031			$	14,750,473
Average PPP loans			(166,164	)			(207,127	)			(889,235	)			(1,065,919	)			(1,349,403	)			(418,194	)			(1,946,651	)
Adjusted average total loans and leases		$	13,732,870			$	14,635,305			$	14,588,738			$	14,322,084			$	14,304,580			$	14,315,837			$	12,803,822
Loan yield, excluding PPP			7.95	%			6.89	%			6.46	%			5.86	%			5.15	%			7.09	%			4.75	%

Core Efficiency Ratio - Customers Bancorp																						Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022					2023				2022
GAAP net interest income		$	199,773			$	165,271			$	149,899			$	135,137			$	159,032			$	514,943			$	488,583
GAAP non-interest income		$	17,775			$	15,997			$	18,121			$	7,345			$	(9,017	)		$	51,893			$	24,927
Loss on sale of consumer installment loans			—				—				—				—				23,465				—				23,465
Loss on sale of capital call lines of credit			—				5,037				—				—				—				5,037				—
(Gains) losses on investment securities			626				62				(62	)			16,909				2,394				626				6,965
Derivative credit valuation adjustment			(192	)			(130	)			259				252				(461	)			(63	)			(1,873	)
Core non-interest income			18,209				20,966				18,318				24,506				16,381				57,493				53,484
Core revenue		$	217,982			$	186,237			$	168,217			$	159,643			$	175,413			$	572,436			$	542,067
GAAP non-interest expense		$	89,466			$	89,297			$	80,133			$	78,419			$	76,198			$	258,896			$	226,210
Severance expense			—				(182	)			(809	)			—				(1,363	)			(991	)			(1,363	)
Impairments on fixed assets and leases			—				(15	)			(109	)			—				(162	)			(124	)			(1,362	)
Core non-interest expense		$	89,466			$	89,100			$	79,215			$	78,419			$	74,673			$	257,781			$	223,485
Core efficiency ratio (1)			41.04	%			47.84	%			47.09	%			49.12	%			42.57	%			45.03	%			41.23	%
(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)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022
GAAP total shareholders' equity		$	1,561,607			$	1,456,652			$	1,421,020			$	1,402,961			$	1,386,931
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		$	1,420,184			$	1,315,229			$	1,279,597			$	1,261,538			$	1,245,508
GAAP total assets		$	21,857,152			$	22,028,565			$	21,751,614			$	20,896,112			$	20,367,621
Reconciling items:
Goodwill and other intangibles			(3,629	)			(3,629	)			(3,629	)			(3,629	)			(3,629	)
Tangible assets		$	21,853,523			$	22,024,936			$	21,747,985			$	20,892,483			$	20,363,992
Tangible common equity to tangible assets			6.5	%			6.0	%			5.9	%			6.0	%			6.1	%

Tangible Common Equity to Tangible Assets, excluding PPP - Customers Bancorp
(Dollars in thousands, except per share data)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022
GAAP total shareholders' equity		$	1,561,607			$	1,456,652			$	1,421,020			$	1,402,961			$	1,386,931
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		$	1,420,184			$	1,315,229			$	1,279,597			$	1,261,538			$	1,245,508
GAAP total assets		$	21,857,152			$	22,028,565			$	21,751,614			$	20,896,112			$	20,367,621
Loans receivable, PPP			(137,063	)			(188,763	)			(246,258	)			(998,153	)			(1,154,632	)
Total assets, excluding PPP		$	21,720,089			$	21,839,802			$	21,505,356			$	19,897,959			$	19,212,989
Reconciling items:
Goodwill and other intangibles			(3,629	)			(3,629	)			(3,629	)			(3,629	)			(3,629	)
Tangible assets, excluding PPP		$	21,716,460			$	21,836,173			$	21,501,727			$	19,894,330			$	19,209,360
Tangible common equity to tangible assets, excluding PPP			6.5	%			6.0	%			6.0	%			6.3	%			6.5	%

Tangible Book Value per Common Share - Customers Bancorp
(Dollars in thousands, except share and per share data)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022
GAAP total shareholders' equity		$	1,561,607			$	1,456,652			$	1,421,020			$	1,402,961			$	1,386,931
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		$	1,420,184			$	1,315,229			$	1,279,597			$	1,261,538			$	1,245,508
Common shares outstanding			31,311,254				31,282,318				31,239,750				32,373,697				32,475,502
Tangible book value per common share		$	45.36			$	42.04			$	40.96			$	38.97			$	38.35

Core Loans (Total Loans and Leases, excluding PPP)
(Dollars in thousands, except per share data)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022
Total loans and leases		$	13,713,482			$	13,910,907			$	15,063,034			$	15,794,671			$	15,336,688
Loans receivable, PPP			(137,063	)			(188,763	)			(246,258	)			(998,153	)			(1,154,632	)
Core Loans (Total loans and leases, excluding PPP)		$	13,576,419			$	13,722,144			$	14,816,776			$	14,796,518			$	14,182,056

Core Loans Held for Investment (Total Loans and Leases Held for Investment, excluding PPP)
(Dollars in thousands, except per share data)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022
Total loans and leases, held for investment		$	13,563,114			$	13,832,799			$	14,638,977			$	15,466,359			$	15,331,464
Loans receivable, PPP			(137,063	)			(188,763	)			(246,258	)			(998,153	)			(1,154,632	)
Core Loans Held for Investment (Total loans and leases held for investment, excluding PPP)		$	13,426,051			$	13,644,036			$	14,392,719			$	14,468,206			$	14,176,832

Total Assets, excluding PPP
(Dollars in thousands, except per share data)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022
Total assets		$	21,857,152			$	22,028,565			$	21,751,614			$	20,896,112			$	20,367,621
Loans receivable, PPP			(137,063	)			(188,763	)			(246,258	)			(998,153	)			(1,154,632	)
Total assets, excluding PPP		$	21,720,089			$	21,839,802			$	21,505,356			$	19,897,959			$	19,212,989

Coverage of credit loss reserves for loans and leases held for investment, excluding PPP
(Dollars in thousands, except per share data)		Q3 2023				Q2 2023				Q1 2023				Q4 2022				Q3 2022
Loans and leases receivable		$	12,600,548			$	12,826,531			$	13,391,610			$	14,143,047			$	13,762,374
Loans receivable, PPP			(137,063	)			(188,763	)			(246,258	)			(998,153	)			(1,154,632	)
Loans and leases held for investment, excluding PPP		$	12,463,485			$	12,637,768			$	13,145,352			$	13,144,894			$	12,607,742
Allowance for credit losses on loans and leases		$	139,213			$	139,656			$	130,281			$	130,924			$	130,197
Coverage of credit loss reserves for loans and leases held for investment, excluding PPP			1.12	%			1.11	%			0.99	%			1.00	%			1.03	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231026731318/en/

David W. Patti, Communications Director 610-451-9452

Source: Customers Bancorp, Inc.

FAQ

What were Customers Bancorp's net income and core earnings in Q3 2023?

Customers Bancorp reported net income of $83.0 million and core earnings of $83.3 million in Q3 2023.

What was the net interest margin in Q3 2023?

The net interest margin in Q3 2023 was 3.70%.

How much did total deposits grow in Q3 2023?

Total deposits grew by $244.9 million in Q3 2023.

How much did non-interest bearing deposits increase in Q3 2023?

Non-interest bearing deposits increased by $268.5 million in Q3 2023.

What was the provision for credit losses in Q3 2023?

The provision for credit losses in Q3 2023 decreased to $17.1 million.

How much did book value per share and tangible book value per share grow in Q3 2023?

Book value per share and tangible book value per share both grew by $3.31 in Q3 2023.