Customers Bancorp Reports Results for Third Quarter 2024

Rhea-AI Summary

Customers Bancorp (NYSE:CUBI) reported Q3 2024 net income of $42.9 million, or $1.31 per diluted share. Core earnings were $43.8 million, or $1.34 per diluted share. Total loans and leases grew by $520.8 million (16% annualized) from Q2 2024. The bank received $1.1 billion in commercial deposit inflows, which funded the paydown of $0.7 billion in higher-cost deposits. Net interest margin decreased to 3.06% from 3.29% in Q2. Asset quality remained strong with non-performing assets at 0.22% of total assets. The CET1 ratio was 12.5%, above the 11.5% target. Book value per share grew 4.5% to $52.96.

Positive

• Strong loan growth of $520.8 million (16% annualized)
• Significant deposit inflows of $1.1 billion from commercial customers
• Strong asset quality with non-performing assets at just 0.22% of total assets
• Book value per share increased 4.5% quarter-over-quarter
• CET1 ratio of 12.5%, well above 11.5% target

Negative

• Net income decreased 20.9% from $54.3 million in Q2 2024
• Net interest margin declined to 3.06% from 3.29% in Q2 2024
• Efficiency ratio increased to 62.40% from 51.87% in Q2 2024

Insights

Financial Analyst

The Q3 2024 results for Customers Bancorp show mixed performance. Key highlights include:

• Net income of $42.9 million ($1.31 per share), down 20.9% from Q2 2024
• Strong loan growth of $520.8 million (16% annualized)
• Deposit growth of $391.3 million with improved deposit mix
• Net interest margin compressed to 3.06% from 3.29% in Q2
• Asset quality remains solid with NPAs at 0.22% of assets

The decline in earnings was primarily driven by NIM compression and higher deposit costs, though this was partially offset by loan growth and improved deposit mix. The bank maintains strong capital levels with CET1 at 12.5% and healthy liquidity covering 183% of uninsured deposits. While near-term profitability faces some pressure, the underlying franchise continues to strengthen through deposit transformation and relationship-focused loan growth.

Risk Analyst

The risk profile shows stability despite market challenges:

• Non-performing assets remain low at 0.22% of total assets
• Strong reserve coverage at 281% of non-performing loans
• Net charge-offs declined to $17.0 million from $18.7 million in Q2
• exposure to high-risk office CRE at only 1% of loan portfolio
• Well-diversified deposit base with 75% insured deposits

The bank's conservative risk management approach and strong capital/liquidity buffers provide significant protection against potential credit deterioration. The declining trend in criticized loans and stable asset quality metrics suggest effective risk controls are in place.

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

Third Quarter 2024 Highlights

• Q3 2024 net income available to common shareholders was $42.9 million, or $1.31 per diluted share; ROAA was 0.88% and ROCE was 10.44%.
• Q3 2024 core earnings*¹ were $43.8 million, or $1.34 per diluted share; Core ROAA* was 0.89% and Core ROCE* was 10.66%.
• CET 1 ratio of 12.5%² at September 30, 2024, compared to 12.8% at June 30, 2024, above the 11.5% target.
• TCE / TA ratio* of 7.7% at September 30, 2024, compared to 7.7% at June 30, 2024, above the 7.5% target.
• Total loans and leases held for investment grew by $520.8 million in Q3 2024 from Q2 2024 or 16% annualized.
• Q3 2024 deposit inflows from commercial customers of $1.1 billion funded the paydown of $0.7 billion of higher-cost commercial and consumer deposits. Total deposits increased by $391.3 million in Q3 2024 from Q2 2024.
• Total estimated insured deposits were 75%³ of total deposits at September 30, 2024, with immediately available liquidity covering estimated uninsured deposits³ by approximately 183%.
• Q3 2024 net interest margin, tax equivalent (“NIM”) was 3.06%, compared to Q2 2024 NIM of 3.29% primarily due to lower discount accretion and prepayment income in Q3 2024 as well as lower average consumer installment loan balances and securities portfolio repositioning.
• Non-performing assets were $47.3 million, or 0.22% of total assets, at September 30, 2024 compared to 0.23% at June 30, 2024.
• Q3 2024 provision for credit losses on loans and leases was $17.8 million compared to $17.9 million in Q2 2024 and the allowance for credit losses on loans and leases equaled 281% of non-performing loans at September 30, 2024, compared to 280% at June 30, 2024.
• Q3 2024 book value per share and tangible book value per share* both grew by approximately $2.26, or 4.5% over Q2 2024, or 17.7% annualized, with a tangible book value per share* of $52.96 at September 30, 2024. This was driven by current quarter earnings and a decrease in AOCI losses of $25.3 million.

*		Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.
1		Excludes pre-tax severance expense of $0.7 million, unrealized losses on loans held for sale of $0.6 million, gain on investment securities of $0.4 million and derivative credit valuation adjustment of $0.2 million.
2		Regulatory capital ratios as of September 30, 2024 are estimates.
3		Uninsured deposits (estimate) of $6.1 billion to be reported on the Bank’s call report, less deposits of $1.4 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $136.5 million.

CEO Commentary

“Customers Bancorp continued to deliver on its strategic priorities to grow our franchise value through lower-cost and granular deposit inflows and diversified loan growth while we manage our operational risks,” said Customers Bancorp Chairman and CEO Jay Sidhu. “We have strong momentum as we pursue phase two of our deposit transformation strategy – remixing existing higher-cost business unit deposits*¹ and brokered deposits into core lower-cost and granular deposits. We started the year with robust pipeline within our existing businesses which has been materially enhanced by the new commercial banking teams that joined Customers in April. In the quarter, we utilized deposit growth from commercial customers of $1.1 billion to paydown $0.7 billion of higher-cost commercial and consumer client deposits. In the third quarter, these inflows were, once again, broad-based with more than 25 different channels increasing balances and 70% of channels contributing $25 million or more. Our new deposit focused commercial banking teams have opened over 3,000 new deposit accounts since joining and gathered $536 million in deposits at an interest rate of approximately 2.9% with approximately 30% being non-interest bearing. Our deposit pipelines continue to grow with an extraordinary conversion ratio. We repurchased 373,974 shares of common stock under the previously authorized share repurchase program at an average price below Tangible Book Value per share*. Even with the share repurchase and balance sheet growth, our TCE / TA ratio* remained flat. Enhanced by the addition of our new banking teams, we believe we are extremely well-positioned to continue to strengthen our deposit franchise, improve our profitability, and maintain our already strong capital ratios,” stated Jay Sidhu.

“Our Q3 2024 GAAP earnings were $42.9 million, or $1.31 per diluted share, and core earnings* were $43.8 million, or $1.34 per diluted share. At September 30, 2024, our deposit base was well diversified, with approximately 75%² of total deposits insured. We maintain a strong liquidity position, with $8.3 billion of liquidity immediately available, which covers approximately 183% of uninsured deposits² and our loan to deposit ratio was 78%. We continue to focus loan production where we have a holistic and primary relationship. Total loans and leases held for investment grew by $520.8 million which represent a 16% annualized growth rate, driven by strong commercial loan growth of $539.5 million. Our loan pipeline continued to build during the third quarter, and we remain confident in achieving the 10% – 15% loan growth outlook previously provided. We continue to hold strong levels of liquidity and capital to support the needs of our customers. Asset quality remains strong, and a clear differentiator for us, with our NPA ratio at just 0.22% of total assets and reserve levels are robust at 281% of total non-performing loans at the end of Q3 2024. Total net charge-offs declined by $1.7 million and the combined level of special mention and substandard commercial loans declined by $44.0 million during the quarter. Our exposure to the higher risk commercial real estate office sector is minimal, representing approximately 1% of the loan portfolio. We will remain disciplined, but opportunistic, with our balance sheet capacity to manage risk and maintain robust capital levels. Tangible Book Value per share* grew to $52.96. We are excited and optimistic about the opportunities ahead which have been enhanced by the addition of the new banking teams,” 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		Total deposits excluding wholesale CDs and BMTX student-related deposits.
2		Uninsured deposits (estimate) of $6.1 billion to be reported on the Bank’s call report, less deposits of $1.4 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $136.5 million.

Financial Highlights

(Dollars in thousands, except per share data)		At or Three Months Ended								Increase (Decrease)
		September 30, 2024				June 30, 2024
Profitability Metrics:
Net income available for common shareholders		$	42,937			$	54,300			$	(11,363	)		(20.9	)%
Diluted earnings per share		$	1.31			$	1.66			$	(0.35	)		(21.1	)%
Core earnings*		$	43,838			$	48,567			$	(4,729	)		(9.7	)%
Adjusted core earnings*		$	41,381			$	48,567			$	(7,186	)		(14.8	)%
Core earnings per share*		$	1.34			$	1.49			$	(0.15	)		(10.1	)%
Adjusted core earnings per share*		$	1.26			$	1.49			$	(0.23	)		(15.4	)%
Return on average assets (“ROAA”)			0.88	%			1.11	%			(0.23	)
Core ROAA*			0.89	%			1.00	%			(0.11	)
Adjusted core ROAA*			0.85	%			1.00	%			(0.15	)
Return on average common equity (“ROCE”)			10.44	%			13.85	%			(3.41	)
Core ROCE*			10.66	%			12.39	%			(1.73	)
Adjusted core ROCE*			10.06	%			12.39	%			(2.33	)
Core pre-tax pre-provision net income*		$	64,824			$	89,220			$	(24,396	)		(27.3	)%
Adjusted core pre-tax pre-provision net income*		$	61,827			$	89,220			$	(27,393	)		(30.7	)%
Net interest margin, tax equivalent			3.06	%			3.29	%			(0.23	)
Yield on loans (Loan yield)			6.99	%			7.17	%			(0.18	)
Cost of deposits			3.46	%			3.40	%			0.06
Efficiency ratio			62.40	%			51.87	%			10.53
Core efficiency ratio*			61.69	%			53.47	%			8.22
Adjusted core efficiency ratio*			63.48	%			53.47	%			10.01
Non-interest expense to average total assets			1.95	%			1.98	%			(0.03	)
Core non-interest expense to average total assets*			1.94	%			1.93	%			0.01
Adjusted core non-interest expense to average total assets*			1.99	%			1.93	%			0.06
Balance Sheet Trends:
Total assets		$	21,456,082			$	20,942,975			$	513,107			2.5	%
Total cash and investment securities		$	6,564,528			$	6,523,036			$	41,492			0.6	%
Total loans and leases		$	14,053,116			$	13,632,639			$	420,477			3.1	%
Non-interest bearing demand deposits		$	4,670,809			$	4,474,862			$	195,947			4.4	%
Total deposits		$	18,069,389			$	17,678,093			$	391,296			2.2	%
Capital Metrics:
Common Equity		$	1,663,386			$	1,609,071			$	54,315			3.4	%
Tangible Common Equity*		$	1,659,757			$	1,605,442			$	54,315			3.4	%
Common Equity to Total Assets			7.8	%			7.7	%			0.1
Tangible Common Equity to Tangible Assets*			7.7	%			7.7	%			—
Book Value per common share		$	53.07			$	50.81			$	2.26			4.4	%
Tangible Book Value per common share*		$	52.96			$	50.70			$	2.26			4.5	%
Common equity Tier 1 capital ratio (1)			12.5	%			12.8	%			(0.3	)
Total risk based capital ratio (1)			15.4	%			15.8	%			(0.4	)
(1) Regulatory capital ratios as of September 30, 2024 are estimates.
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

Financial Highlights

(Dollars in thousands, except per share data)		At or Three Months Ended								Increase (Decrease)							Nine Months Ended								Increase (Decrease)
		September 30, 2024				September 30, 2023											September 30, 2024				September 30, 2023
Profitability Metrics:
Net income available for common shareholders		$	42,937			$	82,953			$	(40,016	)		(48.2	)%		$	143,163			$	177,225			$	(34,062	)		(19.2	)%
Diluted earnings per share		$	1.31			$	2.58			$	(1.27	)		(49.2	)%		$	4.37			$	5.53			$	(1.16	)		(21.0	)%
Core earnings*		$	43,838			$	83,294			$	(39,456	)		(47.4	)%		$	138,937			$	186,600			$	(47,663	)		(25.5	)%
Adjusted core earnings*		$	41,381			$	83,294			$	(41,913	)		(50.3	)%		$	145,085			$	186,600			$	(41,515	)		(22.2	)%
Core earnings per share*		$	1.34			$	2.59			$	(1.25	)		(48.3	)%		$	4.24			$	5.82			$	(1.58	)		(27.1	)%
Adjusted core earnings per share*		$	1.26			$	2.59			$	(1.33	)		(51.4	)%		$	4.43			$	5.82			$	(1.39	)		(23.9	)%
Return on average assets (“ROAA”)			0.88	%			1.57	%			(0.69	)						0.97	%			1.17	%			(0.20	)
Core ROAA*			0.89	%			1.57	%			(0.68	)						0.95	%			1.22	%			(0.27	)
Adjusted core ROAA*			0.85	%			1.57	%			(0.72	)						0.99	%			1.22	%			(0.23	)
Return on average common equity (“ROCE”)			10.44	%			23.97	%			(13.53	)						12.10	%			17.84	%			(5.74	)
Core ROCE*			10.66	%			24.06	%			(13.40	)						11.74	%			18.79	%			(7.05	)
Adjusted core ROCE*			10.06	%			24.06	%			(14.00	)						12.26	%			18.79	%			(6.53	)
Core pre-tax pre-provision net income*		$	64,824			$	128,564			$	(63,740	)		(49.6	)%		$	237,718			$	314,679			$	(76,961	)		(24.5	)%
Adjusted core pre-tax pre-provision net income*		$	61,827			$	128,564			$	(66,737	)		(51.9	)%		$	246,035			$	314,679			$	(68,644	)		(21.8	)%
Net interest margin, tax equivalent			3.06	%			3.70	%			(0.64	)						3.16	%			3.28	%			(0.12	)
Yield on loans (Loan yield)			6.99	%			7.87	%			(0.88	)						7.07	%			7.12	%			(0.05	)
Cost of deposits			3.46	%			3.24	%			0.22							3.44	%			3.23	%			0.21
Efficiency ratio			62.40	%			41.01	%			21.39							55.97	%			45.62	%			10.35
Core efficiency ratio*			61.69	%			41.04	%			20.65							56.29	%			45.03	%			11.26
Adjusted core efficiency ratio*			63.48	%			41.04	%			22.44							54.75	%			45.03	%			9.72
Non-interest expense to average total assets			1.95	%			1.62	%			0.33							1.93	%			1.61	%			0.32
Core non-interest expense to average total assets*			1.94	%			1.62	%			0.32							1.91	%			1.60	%			0.31
Adjusted core non-interest expense to average total assets*			1.99	%			1.62	%			0.37							1.86	%			1.60	%			0.26
(1) Regulatory capital ratios as of September 30, 2024 are estimates.
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

Financial Highlights

(Dollars in thousands, except per share data)		At or Three Months Ended								Increase (Decrease)
		September 30, 2024				September 30, 2023
Balance Sheet Trends:
Total assets		$	21,456,082			$	21,857,152			$	(401,070	)		(1.8	)%
Total cash and investment securities		$	6,564,528			$	7,371,551			$	(807,023	)		(10.9	)%
Total loans and leases		$	14,053,116			$	13,713,482			$	339,634			2.5	%
Non-interest bearing demand deposits		$	4,670,809			$	4,758,682			$	(87,873	)		(1.8	)%
Total deposits		$	18,069,389			$	18,195,364			$	(125,975	)		(0.7	)%
Capital Metrics:
Common Equity		$	1,663,386			$	1,423,813			$	239,573			16.8	%
Tangible Common Equity*		$	1,659,757			$	1,420,184			$	239,573			16.9	%
Common Equity to Total Assets			7.8	%			6.5	%			1.3
Tangible Common Equity to Tangible Assets*			7.7	%			6.5	%			1.2
Book Value per common share		$	53.07			$	45.47			$	7.60			16.7	%
Tangible Book Value per common share*		$	52.96			$	45.36			$	7.60			16.8	%
Common equity Tier 1 capital ratio (1)			12.5	%			11.3	%			1.2
Total risk based capital ratio (1)			15.4	%			14.3	%			1.1
(1) Regulatory capital ratios as of September 30, 2024 are estimates.
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

Key Balance Sheet Trends

Loans and Leases

The following table presents the composition of total loans and leases as of the dates indicated:

(Dollars in thousands)		September 30, 2024			% of Total			June 30, 2024			% of Total			September 30, 2023			% of Total
Loans and Leases Held for Investment
Commercial:
Commercial & industrial:
Specialized lending		$	5,468,507		39.7	%		$	5,528,745		41.7	%		$	5,422,161		40.0	%
Other commercial & industrial (1)			1,087,222		7.9				1,092,146		8.2				1,252,427		9.2
Mortgage finance			1,367,617		9.9				1,122,812		8.5				1,042,549		7.7
Multifamily			2,115,978		15.4				2,067,332		15.6				2,130,213		15.7
Commercial real estate owner occupied			981,904		7.1				805,779		6.1				794,815		5.9
Commercial real estate non-owner occupied			1,326,591		9.6				1,202,606		9.1				1,178,203		8.7
Construction			174,509		1.3				163,409		1.2				252,588		1.8
Total commercial loans and leases			12,522,328		90.9				11,982,829		90.4				12,072,956		89.0
Consumer:
Residential			500,786		3.6				481,503		3.6				483,133		3.6
Manufactured housing			34,481		0.3				35,901		0.3				40,129		0.3
Installment:
Personal			453,739		3.3				474,481		3.6				629,843		4.6
Other			266,362		1.9				282,201		2.1				337,053		2.5
Total installment loans			720,101		5.2				756,682		5.7				966,896		7.1
Total consumer loans			1,255,368		9.1				1,274,086		9.6				1,490,158		11.0
Total loans and leases held for investment		$	13,777,696		100.0	%		$	13,256,915		100.0	%		$	13,563,114		100.0	%
Loans Held for Sale
Residential		$	2,523		0.9	%		$	2,684		0.7	%		$	1,005		0.7	%
Installment:
Personal			55,799		20.3				125,598		33.4				124,848		83.0
Other			217,098		78.8				247,442		65.9				24,515		16.3
Total installment loans			272,897		99.1				373,040		99.3				149,363		99.3
Total loans held for sale		$	275,420		100.0	%		$	375,724		100.0	%		$	150,368		100.0	%
Total loans and leases portfolio		$	14,053,116					$	13,632,639					$	13,713,482
(1) Includes PPP loans of $30.5 million, $38.3 million and $137.1 million as of September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

Loans and Leases Held for Investment

Loans and leases held for investment were $13.8 billion at September 30, 2024, up $520.8 million, or 3.9%, from June 30, 2024. Mortgage finance loans increased by $244.8 million, or 21.8% quarter-over-quarter. Owner-occupied commercial real estate loans increased by $176.1 million, or 21.9% to $981.9 million. Non-owner occupied commercial real estate loans increased by $124.0 million, or 10.3% to $1.3 billion. Multifamily loans increased by $48.6 million, or 2.4% to $2.1 billion. Specialized lending decreased by $60.2 million, or 1.1% quarter-over-quarter, to $5.5 billion. Other commercial and industrial loans decreased by $4.9 million, or 0.5% quarter-over-quarter, to $1.1 billion. Consumer installment loans held for investment decreased by $36.6 million, or 4.8% quarter-over-quarter, to $720.1 million.

Loans and leases held for investment of $13.8 billion at September 30, 2024 were up $214.6 million, or 1.6%, year-over-year. Mortgage finance loans increased by $325.1 million, or 31.2% year-over-year due to higher mortgage activity from lower interest rates. Owner-occupied commercial real estate loans increased by $187.1 million. Non-owner occupied commercial real estate loans increased by $148.4 million. Specialized lending increased by $46.3 million. Consumer installment loans decreased by $246.8 million, or 25.5% year-over-year due to the continued build out of the held-for-sale strategy and de-risking of the held-for-investment loan portfolio. Other commercial and industrial loans decreased by $165.2 million, which included decreases in PPP loans primarily from guarantee payments. Construction loans decreased by $78.1 million.

Loans Held for Sale

Loans held for sale decreased $100.3 million quarter-over-quarter, and were $275.4 million at September 30, 2024 including the sale of consumer installment loans that were classified as held for sale with a carrying value of $200.8 million in Q3 2024. As part of these sales, Customers recognized a loss on sale of $0.3 million, which is presented within net gain (loss) on sale of loans and leases in the consolidated statement of income in Q3 2024.

Allowance for Credit Losses on Loans and Leases

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

		At or Three Months Ended								Increase (Decrease)				At or Three Months Ended								Increase (Decrease)
(Dollars in thousands)		September 30, 2024				June 30, 2024								September 30, 2024				September 30, 2023
Allowance for credit losses on loans and leases		$	133,158			$	132,436			$	722			$	133,158			$	139,213			$	(6,055	)
Provision (benefit) for credit losses on loans and leases		$	17,766			$	17,851			$	(85	)		$	17,766			$	17,055			$	711
Net charge-offs from loans held for investment		$	17,044			$	18,711			$	(1,667	)		$	17,044			$	17,498			$	(454	)
Annualized net charge-offs to average loans and leases			0.50	%			0.56	%							0.50	%			0.50	%
Coverage of credit loss reserves for loans and leases held for investment			1.06	%			1.08	%							1.06	%			1.10	%

Net charge-offs decreased modestly with $17.0 million in Q3 2024, compared to $18.7 million in Q2 2024 and $17.5 million in Q3 2023.

Provision (benefit) for Credit Losses

		Three Months Ended							Increase (Decrease)				Three Months Ended							Increase (Decrease)
(Dollars in thousands)		September 30, 2024				June 30, 2024							September 30, 2024				September 30, 2023
Provision (benefit) for credit losses on loans and leases		$	17,766			$	17,851		$	(85	)		$	17,766			$	17,055		$	711
Provision (benefit) for credit losses on available for sale debt securities			(700	)			270			(970	)			(700	)			801			(1,501	)
Provision for credit losses			17,066				18,121			(1,055	)			17,066				17,856			(790	)
Provision (benefit) for credit losses on unfunded commitments			642				1,594			(952	)			642				48			594
Total provision for credit losses		$	17,708			$	19,715		$	(2,007	)		$	17,708			$	17,904		$	(196	)

The provision for credit losses on loans and leases in Q3 2024 was $17.8 million, compared to $17.9 million in Q2 2024. The lower provision in Q3 2024 was primarily due to slight improvements in macroeconomic forecasts.

The provision for credit losses on available for sale investment securities in Q3 2024 was a benefit to provision of $0.7 million, compared to provision of $0.3 million in Q2 2024.

The provision for credit losses on loans and leases in Q3 2024 was $17.8 million, compared to $17.1 million in Q3 2023. The higher provision in Q3 2024 compared to the year ago period was primarily due to higher balances in commercial and industrial loan balances held for investment, partially offset by lower balances in consumer installment loans held for investment.

The provision for credit losses on available for sale investment securities in Q3 2024 was a benefit to provision of $0.7 million compared to provision of $0.8 million in Q3 2023.

Asset Quality

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

(Dollars in thousands)		September 30, 2024				June 30, 2024				Increase (Decrease)				September 30, 2024				September 30, 2023				Increase (Decrease)
Non-performing assets (“NPAs”):
Nonaccrual / non-performing loans (“NPLs”)		$	47,326			$	47,380			$	(54	)		$	47,326			$	29,867			$	17,459
Non-performing assets		$	47,326			$	47,444			$	(118	)		$	47,326			$	29,970			$	17,356
NPLs to total loans and leases			0.34	%			0.35	%							0.34	%			0.22	%
Reserves to NPLs			281.36	%			279.52	%							281.36	%			466.11	%
NPAs to total assets			0.22	%			0.23	%							0.22	%			0.14	%
Loans and leases (1) risk ratings:
Commercial loans and leases
Pass		$	10,844,500			$	10,500,922			$	343,578			$	10,844,500			$	10,503,731			$	340,769
Special Mention			178,026				170,014				8,012				178,026				189,329				(11,303	)
Substandard			218,921				270,898				(51,977	)			218,921				280,267				(61,346	)
Total commercial loans and leases			11,241,447				10,941,834				299,613				11,241,447				10,973,327				268,120
Consumer loans
Performing			1,240,581				1,256,816				(16,235	)			1,240,581				1,473,493				(232,912	)
Non-performing			14,787				17,270				(2,483	)			14,787				16,665				(1,878	)
Total consumer loans			1,255,368				1,274,086				(18,718	)			1,255,368				1,490,158				(234,790	)
Loans and leases receivable (1)		$	12,496,815			$	12,215,920			$	280,895			$	12,496,815			$	12,463,485			$	33,330
(1) Risk ratings are assigned to loans and leases held for investment, and excludes loans held for sale, loans receivable, mortgage finance, at fair value and eligible PPP loans that are fully guaranteed by the Small Business Administration.

Over the last decade, the Bank has developed a suite of commercial loan products with one particularly important common denominator: relatively low credit risk assumption. The Bank’s commercial and industrial (“C&I”), mortgage finance, corporate and specialized lending lines of business, and multifamily loans for example, are characterized by conservative underwriting standards and historically low loss rates. Because of this emphasis, the Bank’s credit quality to date has been incredibly healthy despite an adverse economic environment. Maintaining strong asset quality also requires a highly active portfolio monitoring process. In addition to frequent client outreach and monitoring at the individual loan level, management employs a bottom-up data driven approach to analyze the commercial portfolio.

Total consumer installment loans held for investment at September 30, 2024 were less than 4% of total assets and approximately 5% of total loans and leases held for investment, and were supported by an allowance for credit losses of $50.1 million. At September 30, 2024, the consumer installment portfolio had the following characteristics: average original FICO score of 746, average debt-to-income of 20% and average borrower income of $101 thousand.

Non-performing loans at September 30, 2024 decreased to 0.34% of total loans and leases, compared to 0.35% at June 30, 2024 and increased, compared to 0.22% at September 30, 2023.

Investment Securities

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

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

(Dollars in thousands)		September 30, 2024			June 30, 2024			September 30, 2023
Debt securities, available for sale		$	2,377,733		$	2,477,758		$	2,746,729
Equity securities			34,336			33,892			26,478
Investment securities, at fair value			2,412,069			2,511,650			2,773,207
Debt securities, held to maturity			1,064,437			962,799			1,178,370
Total investment securities portfolio		$	3,476,506		$	3,474,449		$	3,951,577

Customers’ securities portfolio is highly liquid, short in duration, and high in yield. At September 30, 2024, the AFS debt securities portfolio had a spot yield of 5.23%, an effective duration of approximately 2.0 years, and approximately 30% are variable rate. Additionally, 63% of the AFS securities portfolio was AAA rated at September 30, 2024.

At September 30, 2024, the HTM debt securities portfolio represented only 5.0% of total assets at September 30, 2024, had a spot yield of 4.31% and an effective duration of approximately 3.5 years. Additionally, at September 30, 2024, approximately 43% of the HTM securities were AAA rated and 51% were credit enhanced asset backed securities with no current expectation of credit losses.

As a part of the sales of consumer installment loans that were classified as held for sale, Customers provided financing to the purchaser for a portion of the sale price in the form of $160.0 million of asset-backed securities, collateralized by the sold loans, which mostly accounted for the increase in HTM debt securities at September 30, 2024 as compared to the prior quarter.

Deposits

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

(Dollars in thousands)		September 30, 2024			% of Total			June 30, 2024			% of Total			September 30, 2023			% of Total
Demand, non-interest bearing		$	4,670,809		25.9	%		$	4,474,862		25.3	%		$	4,758,682		26.2	%
Demand, interest bearing			5,606,500		31.0				5,894,056		33.4				5,824,410		32.0
Total demand deposits			10,277,309		56.9				10,368,918		58.7				10,583,092		58.2
Savings			1,399,968		7.7				1,573,661		8.9				1,118,353		6.1
Money market			3,961,028		21.9				3,539,815		20.0				2,499,593		13.7
Time deposits			2,431,084		13.5				2,195,699		12.4				3,994,326		22.0
Total deposits		$	18,069,389		100.0	%		$	17,678,093		100.0	%		$	18,195,364		100.0	%

Total deposits increased $391.3 million, or 2.2%, to $18.1 billion at September 30, 2024 as compared to the prior quarter. Non-interest bearing demand deposits increased $195.9 million, or 4.4%, to $4.7 billion. Money market deposits increased $421.2 million, or 11.9%, to $4.0 billion and time deposits increased $235.4 million, or 10.7%, to $2.4 billion. These increases were offset by decreases in interest bearing demand deposits of $287.6 million, or 4.9%, to $5.6 billion and savings deposits of $173.7 million, or 11.0%, to $1.4 billion. The total average cost of deposits increased by 6 basis points to 3.46% in Q3 2024 from 3.40% in the prior quarter. Total estimated uninsured deposits were $4.5 billion¹, or 25% of total deposits (inclusive of accrued interest) at September 30, 2024. Customers is also highly focused on total deposits with contractual term to manage its liquidity profile and the funding of loans and securities.

“Our deposit costs increased in the quarter attributable to strong deposit growth in the interest bearing category. We’re extremely excited about the success we’re having in bringing new clients to the bank and the long-term franchise value it will drive outweighing any short-term impacts. With the remix efforts underway and in a declining rate environment we expect to have flexibility lowering interest bearing deposit costs going forward including as these newer relationships season,” stated Jay Sidhu.

Total deposits decreased $126.0 million, or 0.7%, to $18.1 billion at September 30, 2024 as compared to a year ago. Time deposits decreased $1.6 billion, or 39.1% to $2.4 billion, interest bearing demand deposits decreased $217.9 million, or 3.7%, to $5.6 billion and non-interest bearing demand deposits decreased $87.9 million, or 1.8%, to $4.7 billion. These decreases were offset by increases in money market deposits of $1.5 billion, or 58.5%, to $4.0 billion and savings deposits of $281.6 million, or 25.2%, to $1.4 billion. The total average cost of deposits increased by 22 basis points to 3.46% in Q3 2024 from 3.24% in the prior year primarily due to higher market interest rates.

Borrowings

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

(Dollars in thousands)		September 30, 2024			June 30, 2024			September 30, 2023
FHLB advances		$	1,117,229		$	1,018,349		$	1,529,839
Senior notes			99,033			123,970			123,775
Subordinated debt			182,439			182,370			182,161
Total borrowings		$	1,398,701		$	1,324,689		$	1,835,775

Total borrowings increased $74.0 million, or 5.6%, to $1.4 billion at September 30, 2024 as compared to the prior quarter. This increase primarily resulted from an increase of $80.0 million in FHLB advances, partially offset by repayment of $25.0 million in senior notes upon maturity. As of September 30, 2024, Customers’ immediately available borrowing capacity with the FRB and FHLB was approximately $7.7 billion, of which $1.1 billion of available capacity was utilized in borrowings and $1.5 billion was utilized to collateralize deposits.

Total borrowings decreased $437.1 million, or 23.8%, to $1.4 billion at September 30, 2024 as compared to a year ago. This decrease primarily resulted from net repayments of $435.0 million in FHLB advances and $25.0 million in senior notes upon maturity.

1		Uninsured deposits (estimate) of $6.1 billion to be reported on the Bank’s call report, less deposits of $1.4 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $136.5 million.

Capital

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

(Dollars in thousands except per share data)		September 30, 2024				June 30, 2024				September 30, 2023
Customers Bancorp, Inc.
Common Equity		$	1,663,386			$	1,609,071			$	1,423,813
Tangible Common Equity*		$	1,659,757			$	1,605,442			$	1,420,184
Common Equity to Total Assets			7.8	%			7.7	%			6.5	%
Tangible Common Equity to Tangible Assets*			7.7	%			7.7	%			6.5	%
Book Value per common share		$	53.07			$	50.81			$	45.47
Tangible Book Value per common share*		$	52.96			$	50.70			$	45.36
Common equity Tier 1 (“CET 1”) capital ratio (1)			12.5	%			12.8	%			11.3	%
Total risk based capital ratio (1)			15.4	%			15.8	%			14.3	%
(1) Regulatory capital ratios as of September 30, 2024 are estimates.
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

Customers Bancorp’s common equity increased $54.3 million to $1.7 billion, and tangible common equity* increased $54.3 million to $1.7 billion, at September 30, 2024 compared to the prior quarter, respectively, primarily from earnings of $42.9 million and decreased unrealized losses on investment securities of $25.3 million (net of taxes) deferred in accumulated other comprehensive income (“AOCI”). These increases were offset in part by $18.2 million of common share repurchases in Q3 2024. Similarly, book value per common share increased to $53.07 from $50.81, and tangible book value per common share* increased to $52.96 from $50.70, at September 30, 2024 and June 30, 2024, respectively.

Customers Bancorp’s common equity increased $239.6 million to $1.7 billion, and tangible common equity* increased $239.6 million to $1.7 billion, at September 30, 2024 compared to a year ago, respectively, primarily from earnings of $201.4 million and decreased unrealized losses on investment securities in AOCI of $43.7 million (net of taxes), offset in part by $18.2 million of common share repurchases. Similarly, book value per common share increased to $53.07 from $45.47, and tangible book value per common share* increased to $52.96 from $45.36, at September 30, 2024 and September 30, 2023, respectively.

At the Customers Bancorp level, the CET 1 ratio (estimate), total risk based capital ratio (estimate), common equity to total assets ratio and tangible common equity to tangible assets ratio* (“TCE / TA ratio”) were 12.5%, 15.4%, 7.8%, and 7.7%, respectively, at September 30, 2024.

At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At September 30, 2024, Tier 1 capital (estimate) and total risk based capital (estimate) were 13.6% and 15.1%, respectively.

Key Profitability Trends

Net Interest Income

Net interest income totaled $158.5 million in Q3 2024, a decrease of $9.1 million from Q2 2024. This decrease was due to lower interest income of $1.9 million primarily due to lower interest income from loans in specialized lending, lower consumer installment loans and higher interest expense of $7.2 million due to higher costs of deposits and other borrowings.

“Net interest income and net interest margin declined in the quarter impacted by higher discount accretion and prepayment income that were benefits in Q2 2024 and did not repeat at the same levels in Q3 2024, as well as initiatives that were proactive risk management strategies including the $200.8 million consumer installment loan sale in Q3 2024 resulting in lower average balances and the well-timed securities portfolio repositioning completed in Q2 2024. These factors accounted for over 80% of the decline in reported net interest margin. Robust loan growth and accretive deposit remix remain as positive drivers that we expect to help increase net interest income and net interest margin in 2025,” stated Customers Bancorp President Sam Sidhu. “These positive drivers are bolstered by the recent team additions. Our new commercial deposit-focused banking teams have substantial momentum and it is clear we have the bankers, products and balance sheet strength to deliver for our new and existing clients. We continue to believe the overwhelming majority of client prospects will become Customers Bank clients in the near future,” stated Sam Sidhu.

Net interest income totaled $158.5 million in Q3 2024, a decrease of $41.2 million from Q3 2023. This decrease was due to lower interest income in specialized lending primarily due to approximately $27.0 million of interest income attributable to outsized discount accretion recognized on the acquired loan portfolio in Q3 2023.

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, 2024				June 30, 2024								September 30, 2024				September 30, 2023
Commercial lease income		$	10,093			$	10,282			$	(189	)		$	10,093			$	8,901			$	1,192
Loan fees			8,011				5,233				2,778				8,011				6,029				1,982
Bank-owned life insurance			2,049				2,007				42				2,049				1,973				76
Mortgage finance transactional fees			1,087				1,058				29				1,087				1,018				69
Net gain (loss) on sale of loans and leases			(14,548	)			(238	)			(14,310	)			(14,548	)			(348	)			(14,200	)
Net gain (loss) on sale of investment securities			—				(719	)			719				—				(429	)			429
Unrealized gain on equity method investments			—				11,041				(11,041	)			—				—				—
Other			1,865				2,373				(508	)			1,865				631				1,234
Total non-interest income		$	8,557			$	31,037			$	(22,480	)		$	8,557			$	17,775			$	(9,218	)

Reported non-interest income totaled $8.6 million for Q3 2024, a decrease of $22.5 million compared to Q2 2024. The decrease was primarily due to $11.0 million of unrealized gain on equity method investments purchased at a discount in Q2 2024 and $14.3 million of loss on leases of commercial clean vehicles that were accounted for as sales-type leases and included within net gain (loss) on sale of loans and leases. These commercial clean vehicle leases generated the same amount of investment tax credits that were included as a benefit to income tax expense in Q3 2024. These decreases were partially offset by an increase of $2.8 million in loan fees primarily resulting from increased unused line of credit fees.

Non-interest income totaled $8.6 million for Q3 2024, a decrease of $9.2 million compared to Q3 2023. As stated above, the decrease was primarily due to $14.3 million of loss on leases of commercial clean vehicles that were accounted for as sales-type leases and included within net gain (loss) on sale of loans and leases. These commercial clean vehicle leases generated the same amount of investment tax credits that were included as a corresponding benefit to income tax expense in Q3 2024. This decrease was partially offset by increases in commercial lease income of $1.2 million and loan fees of $2.0 million primarily resulting from increased 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, 2024			June 30, 2024							September 30, 2024			September 30, 2023
Salaries and employee benefits		$	47,717		$	44,947		$	2,770			$	47,717		$	33,845		$	13,872
Technology, communication and bank operations			13,588			16,227			(2,639	)			13,588			15,667			(2,079	)
Commercial lease depreciation			7,811			7,829			(18	)			7,811			7,338			473
Professional services			9,048			6,104			2,944				9,048			8,569			479
Loan servicing			3,778			3,516			262				3,778			3,858			(80	)
Occupancy			2,987			3,120			(133	)			2,987			2,471			516
FDIC assessments, non-income taxes and regulatory fees			7,902			10,236			(2,334	)			7,902			8,551			(649	)
Advertising and promotion			908			1,254			(346	)			908			650			258
Legal settlement expense			—			—			—				—			4,096			(4,096	)
Other			10,279			10,219			60				10,279			4,421			5,858
Total non-interest expense		$	104,018		$	103,452		$	566			$	104,018		$	89,466		$	14,552

Non-interest expenses totaled $104.0 million in Q3 2024, an increase of $0.6 million compared to Q2 2024. The increase was primarily attributable to increases of $2.8 million in salaries and employee benefits driven by higher headcount including the full quarter impact of Q2 2024 hires, annual merit increases, incentives partially offset by lower severance and $2.9 million in professional fees, partially offset by lower non-income taxes, software expenditures and processing fees.

“In the quarter we incurred professional services expense of approximately $3.0 million as we made investments to enhance our risk management infrastructure. We expect to spend an additional $3.0-$5.0 million in each of the next two quarters as we seek to build a best-in-class risk management function which we believe can be a competitive advantage for the bank in the future,” stated Sam Sidhu.

Non-interest expenses totaled $104.0 million in Q3 2024, an increase of $14.6 million compared to Q3 2023. The increase was primarily attributable to increases of $13.9 million in salaries and employee benefits primarily due to higher headcount including the addition of new banking teams in Q2 2024, annual merit increases, incentives and severance, fees paid to a fintech company related to consumer installment loans originated and held for sale as a part of the Bank’s held for sale strategy, and provision for operating losses. These increases were partially offset by $4.1 million of expenses from a settlement with a third party PPP service provider in Q3 2023 and a decrease in deposit servicing fees.

Taxes

Income tax expense decreased by $19.8 million to a benefit of $0.7 million in Q3 2024 from a provision of $19.0 million in Q2 2024 primarily due to lower pre-tax income and higher estimated income tax credits for 2024, including $14.3 million of investment tax credits generated from commercial clean vehicles in Q3 2024. These investment tax credits from commercial clean vehicle leases were the same amount as the loss on leases of commercial clean vehicles included within net gain (loss) on sale of loans and leases.

Income tax expense decreased by $24.2 million to a benefit of $0.7 million in Q3 2024 from a provision of $23.5 million in Q3 2023 primarily due to lower pre-tax income and an increase in estimated income tax credits for 2024, including $14.3 million of investment tax credits generated from commercial clean vehicles in Q3 2024. These investment tax credits from commercial clean vehicle leases were the same amount as the loss on leases of commercial clean vehicles included within net gain (loss) on sale of loans and leases. The effective tax rate for Q3 2024 was (1.6)%.

Outlook

“Looking forward, our strategy remains unchanged. We are focused on strengthening our deposit franchise, improving our profitability and maintaining our strong capital ratios. Our deposit pipelines are expected to continue to improve the quality and mix of deposits, reducing higher cost business unit deposits*¹ with lower cost deposits where we have a holistic and primary relationship. The addition of the new banking teams is accelerating and enhancing these efforts which were already well underway. We see attractive opportunities to execute franchise-enhancing loan growth and our pipeline continues to be strong. We remain confident in our ability to deliver 10% - 15% loan growth for the full year. While the interest earning asset repositioning and the hedging we executed impacts our short term margin and will be a headwind in 2024, they will positively impact profitability and earnings in 2025. We expect net interest margin in Q4 2024 to be roughly flattish with Q3 2024. The management of non-interest expenses remains a priority for us. We expect the investments made in recruiting the new commercial banking teams will produce significant benefits by increasing our net interest income and net interest margin as well as improving the overall quality of our deposit franchise. We believe the investments we are making to enhance our risk management infrastructure will pay dividends over the long-term. We previously noted an $8.0-$10.0 million quarterly investment in the new commercial banking teams in 2024 and now about $3.0-$5.0 million of quarterly professional service expense in enhancing our risk management infrastructure for a few quarters. Looking forward we expect the new teams to breakeven in Q1 2025 and payoff throughout 2025 as well as a sunsetting of the additional professional services costs. We would also note that we had an $11.0 million unrealized gain on equity method investments purchased at a discount in Q2 2024 which helped offset some of these investment related expenses. While our efficiency ratio will be elevated in the near term as we make these investments in our future, we remain fundamentally focused on positive operating leverage and working to enable the organization to operate at a mid-40’s efficiency ratio over the medium-term. We are adjusting our guidance on effective tax rate to 18% - 20% primarily as a result of higher estimated investment tax credits in 2024. We remain committed to maintaining CET 1 ratio and TCE / TA ratio* targets of 11.5% and 7.5%, respectively in 2024. We are highly focused on preserving superior credit quality, managing interest rate risk, maintaining robust liquidity, operating with higher 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.
1		Total deposits excluding wholesale CDs and BMTX student-related deposits.

Webcast

Date:										Friday, November 1, 2024
Time:										9:00 AM EDT

The live audio webcast, presentation slides, and earnings press release will be made available at https://www.customersbank.com and at the Customers Bancorp 3rd Quarter Earnings Webcast.

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

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

Institutional Background

Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s top-performing banking companies with over $21 billion in assets making it one of the 80 largest bank holding companies in the U.S. Customers Bank’s commercial and consumer clients benefit from a full suite of technology-enabled tailored product experiences delivered by best-in-class customer service distinguished by a Single Point of Contact approach. In addition to traditional lines such as C&I lending, commercial real estate lending and multifamily lending, Customers Bank also provides a number of national corporate banking services to specialized lending clients. Major accolades include:

• No. 1 on American Banker 2024 list of top-performing banks with $10B to $50B in assets
• No. 29 out of the 100 largest publicly traded banks in 2024 Forbes Best Banks list
• No. 52 on Investor’s Business Daily 100 Best Stocks for 2023

A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender. Learn more: www.customersbank.com.

“Safe Harbor” Statement

In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Customers Bancorp, Inc.’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “project,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.’s control). Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause Customers Bancorp, Inc.’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements, including: a continuation of the recent turmoil in the banking industry, responsive measures taken by us and regulatory authorities to mitigate and manage related risks, regulatory actions taken that address related issues and the costs and obligations associated therewith, such as the FDIC special assessments; the potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to our reputation; effects of competition on deposit rates and growth, loan rates and growth and net interest margin; failure to identify and adequately and promptly address cybersecurity risks, including data breaches and cyberattacks; public health crises and pandemics and their effects on the economic and business environments in which we operate; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the war between Russia and Ukraine and escalating conflict in the Middle East, which could impact economic conditions in the United States; the impact that changes in the economy have on the performance of our loan and lease portfolio, the market value of our investment securities, the demand for our products and services and the availability of sources of funding; the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that affect market interest rates and the money supply; actions that we and our customers take in response to these developments and the effects such actions have on our operations, products, services and customer relationships; higher inflation and its impacts; and the effects of any changes in accounting standards or policies. Customers Bancorp, Inc. cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Customers Bancorp, Inc.’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K for the year ended December 31, 2023, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, including any amendments thereto, that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Customers Bancorp, Inc. does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Customers Bancorp, Inc. or by or on behalf of Customers Bank, except as may be required under applicable law.

Q3 2024 Overview

The following table presents a summary of key earnings and performance metrics for the quarter ended September 30, 2024 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,
		2024				2024				2024				2023				2023				2024				2023
GAAP Profitability Metrics:
Net income available to common shareholders		$	42,937			$	54,300			$	45,926			$	58,223			$	82,953			$	143,163			$	177,225
Per share amounts:
Earnings per share - basic		$	1.36			$	1.72			$	1.46			$	1.86			$	2.65			$	4.54			$	5.63
Earnings per share - diluted		$	1.31			$	1.66			$	1.40			$	1.79			$	2.58			$	4.37			$	5.53
Book value per common share (1)		$	53.07			$	50.81			$	49.29			$	47.73			$	45.47			$	53.07			$	45.47
CUBI stock price (1)		$	46.45			$	47.98			$	53.06			$	57.62			$	34.45			$	46.45			$	34.45
CUBI stock price as % of book value (1)			88	%			94	%			108	%			121	%			76	%			88	%			76	%
Average shares outstanding - basic			31,567,797				31,649,715				31,473,424				31,385,043				31,290,581				31,563,660				31,452,700
Average shares outstanding - diluted			32,766,488				32,699,149				32,854,534				32,521,787				32,175,084				32,773,365				32,036,459
Shares outstanding (1)			31,342,107				31,667,655				31,521,931				31,440,906				31,311,254				31,342,107				31,311,254
Return on average assets (“ROAA”)			0.88	%			1.11	%			0.94	%			1.16	%			1.57	%			0.97	%			1.17	%
Return on average common equity (“ROCE”)			10.44	%			13.85	%			12.08	%			15.93	%			23.97	%			12.10	%			17.84	%
Net interest margin, tax equivalent			3.06	%			3.29	%			3.10	%			3.31	%			3.70	%			3.16	%			3.28	%
Efficiency ratio			62.40	%			51.87	%			54.58	%			49.08	%			41.01	%			55.97	%			45.62	%
Non-GAAP Profitability Metrics (2):
Core earnings		$	43,838			$	48,567			$	46,532			$	61,633			$	83,294			$	138,937			$	186,600
Core pre-tax pre-provision net income		$	64,824			$	89,220			$	83,674			$	101,884			$	128,564			$	237,718			$	314,679
Per share amounts:
Core earnings per share - diluted		$	1.34			$	1.49			$	1.42			$	1.90			$	2.59			$	4.24			$	5.82
Tangible book value per common share (1)		$	52.96			$	50.70			$	49.18			$	47.61			$	45.36			$	52.96			$	45.36
CUBI stock price as % of tangible book value (1)			88	%			95	%			108	%			121	%			76	%			88	%			76	%
Core ROAA			0.89	%			1.00	%			0.95	%			1.22	%			1.57	%			0.95	%			1.22	%
Core ROCE			10.66	%			12.39	%			12.24	%			16.87	%			24.06	%			11.74	%			18.79	%
Core pre-tax pre-provision ROAA			1.21	%			1.71	%			1.58	%			1.90	%			2.32	%			1.50	%			1.95	%
Core pre-tax pre-provision ROCE			14.84	%			21.79	%			21.01	%			26.82	%			36.04	%			19.12	%			30.59	%
Core efficiency ratio			61.69	%			53.47	%			54.24	%			46.70	%			41.04	%			56.29	%			45.03	%
Asset Quality:
Net charge-offs		$	17,044			$	18,711			$	17,968			$	17,322			$	17,498			$	53,723			$	51,713
Annualized net charge-offs to average total loans and leases			0.50	%			0.56	%			0.55	%			0.51	%			0.50	%			0.54	%			0.47	%
Non-performing loans (“NPLs”) to total loans and leases (1)			0.34	%			0.35	%			0.27	%			0.21	%			0.22	%			0.34	%			0.22	%
Reserves to NPLs (1)			281.36	%			279.52	%			373.86	%			499.12	%			466.11	%			281.36	%			466.11	%
Non-performing assets (“NPAs”) to total assets			0.22	%			0.23	%			0.17	%			0.13	%			0.14	%			0.22	%			0.14	%
Customers Bank Capital Ratios (3):
Common equity Tier 1 capital to risk-weighted assets			13.6	%			14.17	%			14.16	%			13.77	%			12.97	%			13.6	%			12.97	%
Tier 1 capital to risk-weighted assets			13.6	%			14.17	%			14.16	%			13.77	%			12.97	%			13.6	%			12.97	%
Total capital to risk-weighted assets			15.1	%			15.64	%			15.82	%			15.28	%			14.45	%			15.1	%			14.45	%
Tier 1 capital to average assets (leverage ratio)			9.1	%			9.16	%			8.82	%			8.71	%			8.25	%			9.1	%			8.25	%
(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 2024 and actual for the remaining periods. In accordance with regulatory capital rules, Customers elected to apply the CECL capital transition provisions which delayed the effects of CECL on regulatory capital for two years until January 1, 2022, followed by a three-year transition period. The cumulative CECL capital transition impact as of December 31, 2021 which amounted to $61.6 million will be phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of September 30, 2024, our regulatory capital ratios reflected 25%, or $15.4 million, benefit associated with the CECL transition provisions.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Dollars in thousands, except per share data)																						Nine Months Ended
		Q3				Q2				Q1				Q4				Q3				September 30,
		2024				2024				2024				2023				2023				2024				2023
Interest income:
Loans and leases		$	228,659			$	224,265			$	217,999			$	239,453			$	271,107			$	670,923			$	757,064
Investment securities			46,265				47,586				46,802				51,074				54,243				140,653				149,585
Interest earning deposits			44,372				45,506				52,817				44,104				43,800				142,695				81,819
Loans held for sale			10,907				13,671				12,048				8,707				4,664				36,626				27,514
Other			1,910				3,010				2,111				2,577				2,526				7,031				5,463
Total interest income			332,113				334,038				331,777				345,915				376,340				997,928				1,021,445
Interest expense:
Deposits			155,829				148,784				153,725				150,307				145,825				458,338				426,130
FHLB advances			12,590				13,437				13,485				18,868				26,485				39,512				61,140
FRB advances			—				—				—				—				—				—				6,286
Subordinated debt			3,537				2,734				2,689				2,688				2,689				8,960				8,067
Other borrowings			1,612				1,430				1,493				1,546				1,568				4,535				4,879
Total interest expense			173,568				166,385				171,392				173,409				176,567				511,345				506,502
Net interest income			158,545				167,653				160,385				172,506				199,773				486,583				514,943
Provision for credit losses			17,066				18,121				17,070				13,523				17,856				52,257				61,088
Net interest income after provision for credit losses			141,479				149,532				143,315				158,983				181,917				434,326				453,855
Non-interest income:
Commercial lease income			10,093				10,282				9,683				9,035				8,901				30,058				27,144
Loan fees			8,011				5,233				5,280				5,926				6,029				18,524				14,290
Bank-owned life insurance			2,049				2,007				3,261				2,160				1,973				7,317				9,617
Mortgage finance transactional fees			1,087				1,058				946				927				1,018				3,091				3,468
Net gain (loss) on sale of loans and leases			(14,548	)			(238	)			10				(91	)			(348	)			(14,776	)			(1,109	)
Loss on sale of capital call lines of credit			—				—				—				—				—				—				(5,037	)
Net gain (loss) on sale of investment securities			—				(719	)			(30	)			(145	)			(429	)			(749	)			(429	)
Unrealized gain on equity method investments			—				11,041				—				—				—				11,041				—
Other			1,865				2,373				2,081				860				631				6,319				3,949
Total non-interest income			8,557				31,037				21,231				18,672				17,775				60,825				51,893
Non-interest expense:
Salaries and employee benefits			47,717				44,947				36,025				33,965				33,845				128,689				99,310
Technology, communication and bank operations			13,588				16,227				21,904				16,887				15,667				51,719				48,663
Commercial lease depreciation			7,811				7,829				7,970				7,357				7,338				23,610				22,541
Professional services			9,048				6,104				6,353				9,820				8,569				21,505				25,357
Loan servicing			3,778				3,516				4,031				3,779				3,858				11,325				13,296
Occupancy			2,987				3,120				2,347				2,320				2,471				8,454				7,750
FDIC assessments, non-income taxes and regulatory fees			7,902				10,236				13,469				13,977				8,551				31,607				21,059
Advertising and promotion			908				1,254				682				850				650				2,844				2,245
Legal settlement expense			—				—				—				—				4,096				—				4,096
Other			10,279				10,219				6,388				4,812				4,421				26,886				14,579
Total non-interest expense			104,018				103,452				99,169				93,767				89,466				306,639				258,896
Income before income tax expense (benefit)			46,018				77,117				65,377				83,888				110,226				188,512				246,852
Income tax expense (benefit)			(725	)			19,032				15,651				21,796				23,470				33,958				58,801
Net income			46,743				58,085				49,726				62,092				86,756				154,554				188,051
Preferred stock dividends			3,806				3,785				3,800				3,869				3,803				11,391				10,826
Net income available to common shareholders		$	42,937			$	54,300			$	45,926			$	58,223			$	82,953			$	143,163			$	177,225
Basic earnings per common share		$	1.36			$	1.72			$	1.46			$	1.86			$	2.65			$	4.54			$	5.63
Diluted earnings per common share			1.31				1.66				1.40				1.79				2.58				4.37				5.53

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - UNAUDITED
(Dollars in thousands)
		September 30,				June 30,				March 31,				December 31,				September 30,
		2024				2024				2024				2023				2023
ASSETS
Cash and due from banks		$	39,429			$	45,045			$	51,974			$	45,210			$	68,288
Interest earning deposits			3,048,593				3,003,542				3,649,146				3,801,136				3,351,686
Cash and cash equivalents			3,088,022				3,048,587				3,701,120				3,846,346				3,419,974
Investment securities, at fair value			2,412,069				2,511,650				2,604,868				2,405,640				2,773,207
Investment securities held to maturity			1,064,437				962,799				1,032,037				1,103,170				1,178,370
Loans held for sale			275,420				375,724				357,640				340,317				150,368
Loans and leases receivable			12,527,283				12,254,204				11,936,621				11,963,855				12,600,548
Loans receivable, mortgage finance, at fair value			1,250,413				1,002,711				962,610				897,912				962,566
Allowance for credit losses on loans and leases			(133,158	)			(132,436	)			(133,296	)			(135,311	)			(139,213	)
Total loans and leases receivable, net of allowance for credit losses on loans and leases			13,644,538				13,124,479				12,765,935				12,726,456				13,423,901
FHLB, Federal Reserve Bank, and other restricted stock			95,035				92,276				100,067				109,548				126,098
Accrued interest receivable			115,588				112,788				120,123				114,766				123,984
Bank premises and equipment, net			6,730				7,019				7,253				7,371				7,789
Bank-owned life insurance			295,531				293,108				293,400				292,193				291,670
Goodwill and other intangibles			3,629				3,629				3,629				3,629				3,629
Other assets			455,083				410,916				361,295				366,829				358,162
Total assets		$	21,456,082			$	20,942,975			$	21,347,367			$	21,316,265			$	21,857,152
LIABILITIES AND SHAREHOLDERS’ EQUITY
Demand, non-interest bearing deposits		$	4,670,809			$	4,474,862			$	4,688,880			$	4,422,494			$	4,758,682
Interest bearing deposits			13,398,580				13,203,231				13,272,503				13,497,742				13,436,682
Total deposits			18,069,389				17,678,093				17,961,383				17,920,236				18,195,364
FHLB advances			1,117,229				1,018,349				1,195,088				1,203,207				1,529,839
Other borrowings			99,033				123,970				123,905				123,840				123,775
Subordinated debt			182,439				182,370				182,300				182,230				182,161
Accrued interest payable and other liabilities			186,812				193,328				193,074				248,358				264,406
Total liabilities			19,654,902				19,196,110				19,655,750				19,677,871				20,295,545
Preferred stock			137,794				137,794				137,794				137,794				137,794
Common stock			35,734				35,686				35,540				35,459				35,330
Additional paid in capital			571,609				567,345				567,490				564,538				559,346
Retained earnings			1,302,745				1,259,808				1,205,508				1,159,582				1,101,359
Accumulated other comprehensive income (loss), net			(106,082	)			(131,358	)			(132,305	)			(136,569	)			(149,812	)
Treasury stock, at cost			(140,620	)			(122,410	)			(122,410	)			(122,410	)			(122,410	)
Total shareholders’ equity			1,801,180				1,746,865				1,691,617				1,638,394				1,561,607
Total liabilities and shareholders’ equity		$	21,456,082			$	20,942,975			$	21,347,367			$	21,316,265			$	21,857,152

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
(Dollars in thousands)
		Three Months Ended
		September 30, 2024								June 30, 2024								September 30, 2023
		Average Balance			Interest Income or Expense			Average Yield or Cost (%)		Average Balance			Interest Income or Expense			Average Yield or Cost (%)		Average Balance			Interest Income or Expense			Average Yield or Cost (%)
Assets
Interest earning deposits		$	3,224,940		$	44,372		5.47%		$	3,325,771		$	45,506		5.50%		$	3,211,753		$	43,800		5.41%
Investment securities (1)			3,706,974			46,265		4.97%			3,732,565			47,586		5.13%			4,240,116			54,243		5.12%
Loans and leases:
Commercial & industrial:
Specialized lending loans and leases (2)			5,805,389			124,667		8.54%			5,446,882			120,977		8.93%			5,717,252			157,671		10.94%
Other commercial & industrial loans (2)(3)			1,533,057			24,654		6.40%			1,540,191			25,119		6.56%			1,779,778			28,616		6.38%
Mortgage finance loans			1,267,656			17,723		5.56%			1,151,407			15,087		5.27%			1,159,698			16,916		5.79%
Multifamily loans			2,071,340			21,147		4.06%			2,108,835			21,461		4.09%			2,141,384			21,292		3.94%
Non-owner occupied commercial real estate loans			1,411,533			21,065		5.94%			1,396,771			20,470		5.89%			1,425,831			21,208		5.90%
Residential mortgages			525,285			6,082		4.61%			520,791			5,955		4.60%			528,022			5,965		4.48%
Installment loans			1,029,812			24,228		9.36%			1,186,486			28,867		9.79%			1,147,069			24,103		8.34%
Total loans and leases (4)			13,644,072			239,566		6.99%			13,351,363			237,936		7.17%			13,899,034			275,771		7.87%
Other interest-earning assets			118,914			1,910		6.39%			110,585			3,010		10.95%			134,416			2,526		7.45%
Total interest-earning assets			20,694,900			332,113		6.39%			20,520,284			334,038		6.54%			21,485,319			376,340		6.96%
Non-interest-earning assets			535,504								464,919								492,691
Total assets		$	21,230,404							$	20,985,203							$	21,978,010
Liabilities
Interest checking accounts		$	5,787,026		$	65,554		4.51%		$	5,719,698		$	64,047		4.50%		$	5,758,215		$	58,637		4.04%
Money market deposit accounts			3,676,994			42,128		4.56%			3,346,718			38,167		4.59%			2,181,184			22,983		4.18%
Other savings accounts			1,563,970			18,426		4.69%			1,810,375			21,183		4.71%			1,077,298			11,582		4.27%
Certificates of deposit			2,339,937			29,721		5.05%			2,034,605			25,387		5.02%			4,466,522			52,623		4.67%
Total interest-bearing deposits (5)			13,367,927			155,829		4.64%			12,911,396			148,784		4.63%			13,483,219			145,825		4.29%
Borrowings			1,334,905			17,739		5.29%			1,454,010			17,601		4.87%			2,328,955			30,742		5.24%
Total interest-bearing liabilities			14,702,832			173,568		4.70%			14,365,406			166,385		4.66%			15,812,174			176,567		4.43%
Non-interest-bearing deposits (5)			4,557,815								4,701,695								4,347,977
Total deposits and borrowings			19,260,647					3.59%			19,067,101					3.51%			20,160,151					3.48%
Other non-interest-bearing liabilities			195,722								203,714								306,822
Total liabilities			19,456,369								19,270,815								20,466,973
Shareholders’ equity			1,774,035								1,714,388								1,511,037
Total liabilities and shareholders’ equity		$	21,230,404							$	20,985,203							$	21,978,010
Net interest income						158,545								167,653								199,773
Tax-equivalent adjustment						392								393								405
Net interest earnings					$	158,937							$	168,046							$	200,178
Interest spread								2.80%								3.03%								3.48%
Net interest margin								3.05%								3.28%								3.70%
Net interest margin tax equivalent (6)								3.06%								3.29%								3.70%
(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
(2) Includes owner occupied commercial real estate loans.
(3) Includes PPP loans.
(4) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.
(5) Total costs of deposits (including interest bearing and non-interest bearing) were 3.46%, 3.40% and 3.24% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
(6) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, presented to approximate interest income as a taxable asset.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED (CONTINUED)
(Dollars in thousands)
		Nine Months Ended
		September 30, 2024								September 30, 2023
		Average Balance			Interest Income or Expense			Average Yield or Cost (%)		Average Balance			Interest Income or Expense			Average Yield or Cost (%)
Assets
Interest earning deposits		$	3,471,011		$	142,695		5.49%		$	2,100,435		$	81,819		5.21%
Investment securities (1)			3,736,770			140,653		5.03%			4,074,464			149,585		4.90%
Loans and leases:
Commercial & industrial:
Specialized lending loans and leases (2)			5,507,963			361,234		8.76%			5,748,053			383,138		8.91%
Other commercial & industrial loans (2)(3)			1,575,815			76,487		6.48%			2,081,688			105,398		6.77%
Mortgage finance loans			1,151,173			45,640		5.30%			1,240,403			53,934		5.81%
Multifamily loans			2,100,501			63,863		4.06%			2,176,294			62,857		3.86%
Non-owner occupied commercial real estate loans			1,385,685			61,714		5.95%			1,434,459			61,284		5.71%
Residential mortgages			522,876			17,745		4.53%			535,502			17,298		4.32%
Installment loans			1,131,633			80,866		9.55%			1,517,632			100,669		8.87%
Total loans and leases (4)			13,375,646			707,549		7.07%			14,734,031			784,578		7.12%
Other interest-earning assets			112,365			7,031		8.36%			119,187			5,463		6.13%
Total interest-earning assets			20,695,792			997,928		6.44%			21,028,117			1,021,445		6.49%
Non-interest-earning assets			487,991								537,160
Total assets		$	21,183,783							$	21,565,277
Liabilities
Interest checking accounts		$	5,682,240		$	191,132		4.49%		$	6,181,097		$	178,984		3.87%
Money market deposit accounts			3,419,880			117,106		4.57%			2,208,853			63,444		3.84%
Other savings accounts			1,708,625			61,008		4.77%			966,539			27,707		3.83%
Certificates of deposit			2,374,982			89,092		5.01%			4,663,548			155,995		4.47%
Total interest-bearing deposits (5)			13,185,727			458,338		4.64%			14,020,037			426,130		4.06%
Federal funds purchased			—			—		—%			5,055			188		4.97%
Borrowings			1,431,520			53,007		4.95%			2,160,332			80,184		4.96%
Total interest-bearing liabilities			14,617,247			511,345		4.67%			16,185,424			506,502		4.18%
Non-interest-bearing deposits (5)			4,626,580								3,642,832
Total deposits and borrowings			19,243,827					3.55%			19,828,256					3.42%
Other non-interest-bearing liabilities			221,278								271,387
Total liabilities			19,465,105								20,099,643
Shareholders’ equity			1,718,678								1,465,634
Total liabilities and shareholders’ equity		$	21,183,783							$	21,565,277
Net interest income						486,583								514,943
Tax-equivalent adjustment						1,179								1,170
Net interest earnings					$	487,762							$	516,113
Interest spread								2.89%								3.08%
Net interest margin								3.15%								3.27%
Net interest margin tax equivalent (6)								3.16%								3.28%
(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
(2) Includes owner occupied commercial real estate loans.
(3) Includes PPP loans.
(4) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.
(5) Total costs of deposits (including interest bearing and non-interest bearing) were 3.44% and 3.23% for the nine months ended September 30, 2024 and 2023, respectively.
(6) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the nine months ended September 30, 2024 and 2023, presented to approximate interest income as a taxable asset.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED
(Dollars in thousands)
		September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Loans and leases held for investment
Commercial:
Commercial & industrial:
Specialized lending		$	5,468,507		$	5,528,745		$	5,104,405		$	5,006,693		$	5,422,161
Other commercial & industrial (1)			1,087,222			1,092,146			1,113,517			1,162,317			1,252,427
Mortgage finance			1,367,617			1,122,812			1,071,146			1,014,742			1,042,549
Multifamily			2,115,978			2,067,332			2,123,675			2,138,622			2,130,213
Commercial real estate owner occupied			981,904			805,779			806,278			797,319			794,815
Commercial real estate non-owner occupied			1,326,591			1,202,606			1,182,084			1,177,650			1,178,203
Construction			174,509			163,409			185,601			166,393			252,588
Total commercial loans and leases			12,522,328			11,982,829			11,586,706			11,463,736			12,072,956
Consumer:
Residential			500,786			481,503			482,537			484,435			483,133
Manufactured housing			34,481			35,901			37,382			38,670			40,129
Installment:
Personal			453,739			474,481			492,892			555,533			629,843
Other			266,362			282,201			299,714			319,393			337,053
Total installment loans			720,101			756,682			792,606			874,926			966,896
Total consumer loans			1,255,368			1,274,086			1,312,525			1,398,031			1,490,158
Total loans and leases held for investment		$	13,777,696		$	13,256,915		$	12,899,231		$	12,861,767		$	13,563,114
Loans held for sale
Residential		$	2,523		$	2,684		$	870		$	1,215		$	1,005
Installment:
Personal			55,799			125,598			137,755			151,040			124,848
Other			217,098			247,442			219,015			188,062			24,515
Total installment loans			272,897			373,040			356,770			339,102			149,363
Total loans held for sale		$	275,420		$	375,724		$	357,640		$	340,317		$	150,368
Total loans and leases portfolio		$	14,053,116		$	13,632,639		$	13,256,871		$	13,202,084		$	13,713,482
(1) Includes PPP loans.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION - UNAUDITED
(Dollars in thousands)
		September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Demand, non-interest bearing		$	4,670,809		$	4,474,862		$	4,688,880		$	4,422,494		$	4,758,682
Demand, interest bearing			5,606,500			5,894,056			5,661,775			5,580,527			5,824,410
Total demand deposits			10,277,309			10,368,918			10,350,655			10,003,021			10,583,092
Savings			1,399,968			1,573,661			2,080,374			1,402,941			1,118,353
Money market			3,961,028			3,539,815			3,347,843			3,226,395			2,499,593
Time deposits			2,431,084			2,195,699			2,182,511			3,287,879			3,994,326
Total deposits		$	18,069,389		$	17,678,093		$	17,961,383		$	17,920,236		$	18,195,364

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)
		As of September 30, 2024									As of June 30, 2024									As of September 30, 2023
Loan type		Total loans			Allowance for credit losses			Total reserves to total loans			Total loans			Allowance for credit losses			Total reserves to total loans			Total loans			Allowance for credit losses			Total reserves to total loans
Commercial:
Commercial & industrial, including specialized lending (1)		$	6,672,933		$	25,191		0.38	%		$	6,740,992		$	23,721		0.35	%		$	6,754,571		$	24,986		0.37	%
Multifamily			2,115,978			18,090		0.85	%			2,067,332			20,652		1.00	%			2,130,213			15,870		0.74	%
Commercial real estate owner occupied			981,904			10,913		1.11	%			805,779			8,431		1.05	%			794,815			10,363		1.30	%
Commercial real estate non-owner occupied			1,326,591			17,303		1.30	%			1,202,606			17,966		1.49	%			1,178,203			15,819		1.34	%
Construction			174,509			1,606		0.92	%			163,409			1,856		1.14	%			252,588			3,130		1.24	%
Total commercial loans and leases receivable			11,271,915			73,103		0.65	%			10,980,118			72,626		0.66	%			11,110,390			70,168		0.63	%
Consumer:
Residential			500,786			5,838		1.17	%			481,503			5,884		1.22	%			483,133			6,802		1.41	%
Manufactured housing			34,481			4,080		11.83	%			35,901			4,094		11.40	%			40,129			4,080		10.17	%
Installment			720,101			50,137		6.96	%			756,682			49,832		6.59	%			966,896			58,163		6.02	%
Total consumer loans receivable			1,255,368			60,055		4.78	%			1,274,086			59,810		4.69	%			1,490,158			69,045		4.63	%
Loans and leases receivable held for investment			12,527,283			133,158		1.06	%			12,254,204			132,436		1.08	%			12,600,548			139,213		1.10	%
Loans receivable, mortgage finance, at fair value			1,250,413			—		—	%			1,002,711			—		—	%			962,566			—		—	%
Loans held for sale			275,420			—		—	%			375,724			—		—	%			150,368			—		—	%
Total loans and leases portfolio		$	14,053,116		$	133,158		0.95	%		$	13,632,639		$	132,436		0.97	%		$	13,713,482		$	139,213		1.02	%
(1) Includes PPP loans.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)
		As of September 30, 2024									As of June 30, 2024									As of September 30, 2023
Loan type		Non accrual /NPLs			Total NPLs to total loans			Total reserves to total NPLs			Non accrual /NPLs			Total NPLs to total loans			Total reserves to total NPLs			Non accrual /NPLs			Total NPLs to total loans			Total reserves to total NPLs
Commercial:
Commercial & industrial, including specialized lending (1)		$	4,615		0.07	%		545.85	%		$	5,488		0.08	%		432.23	%		$	5,767		0.09	%		433.26	%
Multifamily			11,834		0.56	%		152.86	%			14,002		0.68	%		147.49	%			—		—	%		—	%
Commercial real estate owner occupied			8,613		0.88	%		126.70	%			9,612		1.19	%		87.71	%			7,442		0.94	%		139.25	%
Commercial real estate non-owner occupied			763		0.06	%		2267.76	%			62		0.01	%		28977.42	%			—		—	%		—	%
Construction			—		—	%		—	%			—		—	%		—	%			—		—	%		—	%
Total commercial loans and leases receivable			25,825		0.23	%		283.07	%			29,164		0.27	%		249.03	%			13,209		0.12	%		531.21	%
Consumer:
Residential			7,997		1.60	%		73.00	%			8,179		1.70	%		71.94	%			6,559		1.36	%		103.70	%
Manufactured housing			1,869		5.42	%		218.30	%			2,047		5.70	%		200.00	%			2,582		6.43	%		158.02	%
Installment			6,328		0.88	%		792.30	%			5,614		0.74	%		887.64	%			7,299		0.75	%		796.86	%
Total consumer loans receivable			16,194		1.29	%		370.85	%			15,840		1.24	%		377.59	%			16,440		1.10	%		419.98	%
Loans and leases receivable			42,019		0.34	%		316.90	%			45,004		0.37	%		294.28	%			29,649		0.24	%		469.54	%
Loans receivable, mortgage finance, at fair value			—		—	%		—	%			—		—	%		—	%			—		—	%		—	%
Loans held for sale			5,307		1.93	%		—	%			2,376		0.63	%		—	%			218		0.14	%		—	%
Total loans and leases portfolio		$	47,326		0.34	%		281.36	%		$	47,380		0.35	%		279.52	%		$	29,867		0.22	%		466.11	%
(1) Includes PPP loans.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED
(Dollars in thousands)
		Q3				Q2				Q1			Q4				Q3			Nine Months Ended September 30,
		2024				2024				2024			2023				2023			2024				2023
Loan type
Commercial & industrial, including specialized lending		$	5,056			$	5,665			$	3,672		$	5,282			$	2,974		$	14,393			$	3,161
Multifamily			2,167				1,433				473			127				1,999			4,073				3,447
Commercial real estate owner occupied			4				—				22			—				39			26				5
Commercial real estate non-owner occupied			—				—				—			(288	)			—			—				4,500
Construction			(3	)			(7	)			—			—				—			(10	)			(116	)
Residential			(21	)			(20	)			18			(1	)			13			(23	)			35
Installment			9,841				11,640				13,783			12,202				12,473			35,264				40,681
Total net charge-offs (recoveries) from loans held for investment		$	17,044			$	18,711			$	17,968		$	17,322			$	17,498		$	53,723			$	51,713

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED
We believe that the non-GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our core results of operations and financial condition relative to other financial institutions. These non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. These non-GAAP financial measures exclude from corresponding GAAP measures the impact of certain elements that we do not believe are representative of our ongoing financial results, which we believe enhance an overall understanding of our performance and increases comparability of our period to period results. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. The non-GAAP measures presented are not necessarily comparable to non-GAAP measures that may be presented by other financial institutions. Although non-GAAP financial measures are frequently used in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results of operations or financial condition as reported under GAAP.
The following tables present reconciliations of GAAP to non-GAAP measures disclosed within this document.
Core Earnings and Adjusted Core Earnings - Customers Bancorp																																						Nine Months Ended September 30,
		Q3 2024								Q2 2024								Q1 2024						Q4 2023							Q3 2023							2024								2023
(Dollars in thousands, except per share data)		USD				Per share				USD				Per share				USD			Per share			USD				Per share			USD				Per share			USD				Per share				USD				Per share
GAAP net income to common shareholders		$	42,937			$	1.31			$	54,300			$	1.66			$	45,926		$	1.40		$	58,223			$	1.79		$	82,953			$	2.58		$	143,163			$	4.37			$	177,225			$	5.53
Reconciling items (after tax):
Severance expense			540				0.02				1,928				0.06				—			—			473				0.01			—				—			2,468				0.08				778				0.02
Impairments on fixed assets and leases			—				—				—				—				—			—			—				—			—				—			—				—				98				0.00
Loss on sale of capital call lines of credit			—				—				—				—				—			—			—				—			—				—			—				—				3,914				0.12
(Gains) losses on investment securities			(322	)			(0.01	)			561				0.02				57			0.00			(85	)			0.00			492				0.02			296				0.01				492				0.02
Derivative credit valuation adjustment			185				0.01				(44	)			0.00				169			0.01			267				0.01			(151	)			0.00			310				0.01				(48	)			0.00
Tax on surrender of bank-owned life insurance policies			—				—				—				—				—			—			—				—			—				—			—				—				4,141				0.13
FDIC special assessment			—				—				138				0.00				380			0.01			2,755				0.08			—				—			518				0.02				—				—
Unrealized (gain) on equity method investments			—				—				(8,316	)			(0.25	)			—			—			—				—			—				—			(8,316	)			(0.25	)			—				—
Unrealized losses on loans held for sale			498				0.02				—				—				—			—			—				—			—				—			498				0.02				—				—
Core earnings		$	43,838			$	1.34			$	48,567			$	1.49			$	46,532		$	1.42		$	61,633			$	1.90		$	83,294			$	2.59		$	138,937			$	4.24			$	186,600			$	5.82
One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024			—				—				—				—				5,405			0.16			—				—			—				—			5,405				0.16				—				—
FDIC premiums prior to 2024			—				—				—				—				3,200			0.10			—				—			—				—			3,200				0.10				—				—
Non-income taxes prior to 2024			(2,457	)			(0.07	)			—				—				—			—			—				—			—				—			(2,457	)			(0.07	)			—				—
Total one-time non-interest expense items			(2,457	)			(0.07	)			—				—				8,605			0.26			—				—			—				—			6,148				0.19				—				—
Adjusted core earnings (adjusted for one-time non-interest expense items)		$	41,381			$	1.26			$	48,567			$	1.49			$	55,137		$	1.68		$	61,633			$	1.90		$	83,294			$	2.59		$	145,085			$	4.43			$	186,600			$	5.82

Core Return on Average Assets and Adjusted Core Return on Average Assets - Customers Bancorp																						Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Q3 2024				Q2 2024				Q1 2024				Q4 2023				Q3 2023				2024				2023
GAAP net income		$	46,743			$	58,085			$	49,726			$	62,092			$	86,756			$	154,554			$	188,051
Reconciling items (after tax):
Severance expense			540				1,928				—				473				—				2,468				778
Impairments on fixed assets and leases			—				—				—				—				—				—				98
Loss on sale of capital call lines of credit			—				—				—				—				—				—				3,914
(Gains) losses on investment securities			(322	)			561				57				(85	)			492				296				492
Derivative credit valuation adjustment			185				(44	)			169				267				(151	)			310				(48	)
Tax on surrender of bank-owned life insurance policies			—				—				—				—				—				—				4,141
FDIC special assessment			—				138				380				2,755				—				518				—
Unrealized (gain) on equity method investments			—				(8,316	)			—				—				—				(8,316	)			—
Unrealized losses on loans held for sale			498				—				—				—				—				498				—
Core net income		$	47,644			$	52,352			$	50,332			$	65,502			$	87,097			$	150,328			$	197,426
One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024			—				—				5,405				—				—				5,405				—
FDIC premiums prior to 2024			—				—				3,200				—				—				3,200				—
Non-income taxes prior to 2024			(2,457	)			—				—				—				—				(2,457	)			—
Total one-time non-interest expense items			(2,457	)			—				8,605				—				—				6,148				—
Adjusted core net income (adjusted for one-time non-interest expense items)		$	45,187			$	52,352			$	58,937			$	65,502			$	87,097			$	156,476			$	197,426
Average total assets		$	21,230,404			$	20,985,203			$	21,335,229			$	21,252,273			$	21,978,010			$	21,183,783			$	21,565,277
Core return on average assets			0.89	%			1.00	%			0.95	%			1.22	%			1.57	%			0.95	%			1.22	%
Adjusted core return on average assets (adjusted for one-time non-interest expense items)			0.85	%			1.00	%			1.11	%			1.22	%			1.57	%			0.99	%			1.22	%

Core Pre-Tax Pre-Provision Net Income and ROAA and Adjusted Core Pre-Tax Pre-Provision Net Income and ROAA - Customers Bancorp																						Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Q3 2024				Q2 2024				Q1 2024				Q4 2023				Q3 2023				2024				2023
GAAP net income		$	46,743			$	58,085			$	49,726			$	62,092			$	86,756			$	154,554			$	188,051
Reconciling items:
Income tax expense (benefit)			(725	)			19,032				15,651				21,796				23,470				33,958				58,801
Provision (benefit) for credit losses			17,066				18,121				17,070				13,523				17,856				52,257				61,088
Provision (benefit) for credit losses on unfunded commitments			642				1,594				430				(136	)			48				2,666				24
Severance expense			659				2,560				—				639				—				3,219				991
Impairments on fixed assets and leases			—				—				—				—				—				—				124
Loss on sale of capital call lines of credit			—				—				—				—				—				—				5,037
(Gains) losses on investment securities			(394	)			744				75				(114	)			626				425				626
Derivative credit valuation adjustment			226				(58	)			222				361				(192	)			390				(63	)
FDIC special assessment			—				183				500				3,723				—				683				—
Unrealized (gain) on equity method investments			—				(11,041	)			—				—				—				(11,041	)			—
Unrealized losses on loans held for sale			607				—				—				—				—				607				—
Core pre-tax pre-provision net income		$	64,824			$	89,220			$	83,674			$	101,884			$	128,564			$	237,718			$	314,679
One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024			—				—				7,106				—				—				7,106				—
FDIC premiums prior to 2024			—				—				4,208				—				—				4,208				—
Non-income taxes prior to 2024			(2,997	)			—				—				—				—				(2,997	)			—
Total one-time non-interest expense items			(2,997	)			—				11,314				—				—				8,317				—
Adjusted core pre-tax pre-provision net income (adjusted for one-time non-interest expense items)		$	61,827			$	89,220			$	94,988			$	101,884			$	128,564			$	246,035			$	314,679
Average total assets		$	21,230,404			$	20,985,203			$	21,335,229			$	21,252,273			$	21,978,010			$	21,183,783			$	21,565,277
Core pre-tax pre-provision ROAA			1.21	%			1.71	%			1.58	%			1.90	%			2.32	%			1.50	%			1.95	%
Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items)			1.16	%			1.71	%			1.79	%			1.90	%			2.32	%			1.55	%			1.95	%

Core Return on Average Common Equity and Adjusted Core Return on Average Common Equity - Customers Bancorp																						Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Q3 2024				Q2 2024				Q1 2024				Q4 2023				Q3 2023				2024				2023
GAAP net income to common shareholders		$	42,937			$	54,300			$	45,926			$	58,223			$	82,953			$	143,163			$	177,225
Reconciling items (after tax):
Severance expense			540				1,928				—				473				—				2,468				778
Impairments on fixed assets and leases			—				—				—				—				—				—				98
Loss on sale of capital call lines of credit			—				—				—				—				—				—				3,914
(Gains) losses on investment securities			(322	)			561				57				(85	)			492				296				492
Derivative credit valuation adjustment			185				(44	)			169				267				(151	)			310				(48	)
Tax on surrender of bank-owned life insurance policies			—				—				—				—				—				—				4,141
FDIC special assessment			—				138				380				2,755				—				518				—
Unrealized (gain) on equity method investments			—				(8,316	)			—				—				—				(8,316	)			—
Unrealized losses on loans held for sale			498				—				—				—				—				498				—
Core earnings		$	43,838			$	48,567			$	46,532			$	61,633			$	83,294			$	138,937			$	186,600
One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024			—				—				5,405				—				—				5,405				—
FDIC premiums prior to 2024			—				—				3,200				—				—				3,200				—
Non-income taxes prior to 2024			(2,457	)			—				—				—				—				(2,457	)			—
Total one-time non-interest expense items			(2,457	)			—				8,605				—				—				6,148				—
Adjusted core earnings (adjusted for one-time non-interest expense items)		$	41,381			$	48,567			$	55,137			$	61,633			$	83,294			$	145,085			$	186,600
Average total common shareholders’ equity		$	1,636,242			$	1,576,595			$	1,529,211			$	1,449,728			$	1,373,244			$	1,580,885			$	1,327,841
Core return on average common equity			10.66	%			12.39	%			12.24	%			16.87	%			24.06	%			11.74	%			18.79	%
Adjusted core return on average common equity (adjusted for one-time non-interest expense items)			10.06	%			12.39	%			14.50	%			16.87	%			24.06	%			12.26	%			18.79	%

Core Pre-Tax Pre-Provision ROCE and Adjusted Core Pre-Tax Pre-Provision ROCE - Customers Bancorp																						Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Q3 2024				Q2 2024				Q1 2024				Q4 2023				Q3 2023				2024				2023
GAAP net income to common shareholders		$	42,937			$	54,300			$	45,926			$	58,223			$	82,953			$	143,163			$	177,225
Reconciling items:
Income tax expense (benefit)			(725	)			19,032				15,651				21,796				23,470				33,958				58,801
Provision (benefit) for credit losses			17,066				18,121				17,070				13,523				17,856				52,257				61,088
Provision (benefit) for credit losses on unfunded commitments			642				1,594				430				(136	)			48				2,666				24
Severance expense			659				2,560				—				639				—				3,219				991
Impairments on fixed assets and leases			—				—				—				—				—				—				124
Loss on sale of capital call lines of credit			—				—				—				—				—				—				5,037
(Gains) losses on investment securities			(394	)			744				75				(114	)			626				425				626
Derivative credit valuation adjustment			226				(58	)			222				361				(192	)			390				(63	)
FDIC special assessment			—				183				500				3,723				—				683				—
Unrealized (gain) on equity method investments			—				(11,041	)			—				—				—				(11,041	)			—
Unrealized losses on loans held for sale			607				—				—				—				—				607				—
Core pre-tax pre-provision net income available to common shareholders		$	61,018			$	85,435			$	79,874			$	98,015			$	124,761			$	226,327			$	303,853
One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024			—				—				7,106				—				—				7,106				—
FDIC premiums prior to 2024			—				—				4,208				—				—				4,208				—
Non-income taxes prior to 2024			(2,997	)			—				—				—				—				(2,997	)			—
Total one-time non-interest expense items			(2,997	)			—				11,314				—				—				8,317				—
Adjusted core pre-tax pre-provision net income available to common shareholders		$	58,021			$	85,435			$	91,188			$	98,015			$	124,761			$	234,644			$	303,853
Average total common shareholders’ equity		$	1,636,242			$	1,576,595			$	1,529,211			$	1,449,728			$	1,373,244			$	1,580,885			$	1,327,841
Core pre-tax pre-provision ROCE			14.84	%			21.79	%			21.01	%			26.82	%			36.04	%			19.12	%			30.59	%
Adjusted core pre-tax pre-provision ROCE (adjusted for one-time non-interest expense items)			14.11	%			21.79	%			23.98	%			26.82	%			36.04	%			19.83	%			30.59	%

Core Efficiency Ratio and Adjusted Core Efficiency Ratio - Customers Bancorp																						Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Q3 2024				Q2 2024				Q1 2024				Q4 2023				Q3 2023				2024				2023
GAAP net interest income		$	158,545			$	167,653			$	160,385			$	172,506			$	199,773			$	486,583			$	514,943
GAAP non-interest income		$	8,557			$	31,037			$	21,231			$	18,672			$	17,775			$	60,825			$	51,893
Loss on sale of capital call lines of credit			—				—				—				—				—				—				5,037
(Gains) losses on investment securities			(394	)			744				75				(114	)			626				425				626
Derivative credit valuation adjustment			226				(58	)			222				361				(192	)			390				(63	)
Unrealized (gain) on equity method investments			—				(11,041	)			—				—				—				(11,041	)			—
Unrealized losses on loans held for sale			607				—				—				—				—				607				—
Core non-interest income			8,996				20,682				21,528				18,919				18,209				51,206				57,493
Core revenue		$	167,541			$	188,335			$	181,913			$	191,425			$	217,982			$	537,789			$	572,436
GAAP non-interest expense		$	104,018			$	103,452			$	99,169			$	93,767			$	89,466			$	306,639			$	258,896
Severance expense			(659	)			(2,560	)			—				(639	)			—				(3,219	)			(991	)
Impairments on fixed assets and leases			—				—				—				—				—				—				(124	)
FDIC special assessment			—				(183	)			(500	)			(3,723	)			—				(683	)			—
Core non-interest expense		$	103,359			$	100,709			$	98,669			$	89,405			$	89,466			$	302,737			$	257,781
One-time non-interest expense items recorded in 2024:
Deposit servicing fees prior to 2024			—				—				(7,106	)			—				—				(7,106	)			—
FDIC premiums prior to 2024			—				—				(4,208	)			—				—				(4,208	)			—
Non-income taxes prior to 2024			2,997				—				—				—				—				2,997				—
Total one-time non-interest expense items			2,997				—				(11,314	)			—				—				(8,317	)			—
Adjusted core non-interest expense		$	106,356			$	100,709			$	87,355			$	89,405			$	89,466			$	294,420			$	257,781
Core efficiency ratio (1)			61.69	%			53.47	%			54.24	%			46.70	%			41.04	%			56.29	%			45.03	%
Adjusted core efficiency ratio (adjusted for one-time non-interest expense items) (2)			63.48	%			53.47	%			48.02	%			46.70	%			41.04	%			54.75	%			45.03	%
(1) Core efficiency ratio calculated as core non-interest expense divided by core revenue.
(2) Adjusted core efficiency ratio calculated as adjusted core non-interest expense divided by core revenue.

Core Non-Interest Expense to Average Total Assets and Adjusted Core Non-Interest Expense to Average Total Assets- Customers Bancorp																						Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Q3 2024				Q2 2024				Q1 2024				Q4 2023				Q3 2023				2024				2023
GAAP non-interest expense		$	104,018			$	103,452			$	99,169			$	93,767			$	89,466			$	306,639			$	258,896
Severance expense			(659	)			(2,560	)			—				(639	)			—				(3,219	)			(991	)
Impairments on fixed assets and leases			—				—				—				—				—				—				(124	)
FDIC special assessment			—				(183	)			(500	)			(3,723	)			—				(683	)			—
Core non-interest expense		$	103,359			$	100,709			$	98,669			$	89,405			$	89,466			$	302,737			$	257,781
One-time non-interest expense items recorded in 2024:
Deposit servicing fees prior to 2024			—				—				(7,106	)			—				—				(7,106	)			—
FDIC premiums prior to 2024			—				—				(4,208	)			—				—				(4,208	)			—
Non-income taxes prior to 2024			2,997				—				—				—				—				2,997				—
Total one-time non-interest expense items			2,997				—				(11,314	)			—				—				(8,317	)			—
Adjusted core non-interest expense		$	106,356			$	100,709			$	87,355			$	89,405			$	89,466			$	294,420			$	257,781
Average total assets		$	21,230,404			$	20,985,203			$	21,335,229			$	21,252,273			$	21,978,010			$	21,183,783			$	21,565,277
Core non-interest expense to average total assets			1.94	%			1.93	%			1.86	%			1.67	%			1.62	%			1.91	%			1.60	%
Adjusted core non-interest expense to average total assets (adjusted for one-time non-interest expense items)			1.99	%			1.93	%			1.65	%			1.67	%			1.62	%			1.86	%			1.60	%

Business Unit Deposits (formerly, Core Deposits, Total Deposits, excluding Wholesale CDs and BMTX student deposits) - Customers Bancorp
(Dollars in thousands, except per share data)		Q3 2024			Q2 2024			Q1 2024			Q4 2023			Q3 2023
Total deposits		$	18,069,389		$	17,678,093		$	17,961,383		$	17,920,236		$	18,195,364
Reconciling items:
Wholesale CDs			1,585,081			1,545,885			1,809,573			2,970,615			3,713,933
BMTX student deposits			—			—			850			1,157			636,951
Business Unit Deposits (formerly, Core Deposits, Total deposits, excluding wholesale CDs and BMTX student deposits)		$	16,484,308		$	16,132,208		$	16,150,960		$	14,948,464		$	13,844,480

Tangible Common Equity to Tangible Assets - Customers Bancorp
(Dollars in thousands, except per share data)		Q3 2024				Q2 2024				Q1 2024				Q4 2023				Q3 2023
GAAP total shareholders’ equity		$	1,801,180			$	1,746,865			$	1,691,617			$	1,638,394			$	1,561,607
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		$	1,659,757			$	1,605,442			$	1,550,194			$	1,496,971			$	1,420,184
GAAP total assets		$	21,456,082			$	20,942,975			$	21,347,367			$	21,316,265			$	21,857,152
Reconciling items:
Goodwill and other intangibles			(3,629	)			(3,629	)			(3,629	)			(3,629	)			(3,629	)
Tangible assets		$	21,452,453			$	20,939,346			$	21,343,738			$	21,312,636			$	21,853,523
Tangible common equity to tangible assets			7.7	%			7.7	%			7.3	%			7.0	%			6.5	%

Tangible Book Value per Common Share - Customers Bancorp
(Dollars in thousands, except share and per share data)		Q3 2024				Q2 2024				Q1 2024				Q4 2023				Q3 2023
GAAP total shareholders’ equity		$	1,801,180			$	1,746,865			$	1,691,617			$	1,638,394			$	1,561,607
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		$	1,659,757			$	1,605,442			$	1,550,194			$	1,496,971			$	1,420,184
Common shares outstanding			31,342,107				31,667,655				31,521,931				31,440,906				31,311,254
Tangible book value per common share		$	52.96			$	50.70			$	49.18			$	47.61			$	45.36

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241030045128/en/

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

Source: Customers Bancorp, Inc.

FAQ

What was Customers Bancorp's (CUBI) net income in Q3 2024?

Customers Bancorp reported net income of $42.9 million, or $1.31 per diluted share, in Q3 2024.

How much did CUBI's loan portfolio grow in Q3 2024?

Total loans and leases grew by $520.8 million, representing a 16% annualized growth rate in Q3 2024.

What was CUBI's net interest margin in Q3 2024?

The net interest margin was 3.06% in Q3 2024, down from 3.29% in Q2 2024.

What was Customers Bancorp's (CUBI) book value per share in Q3 2024?

The tangible book value per share was $52.96 at the end of Q3 2024, increasing by $2.26 or 4.5% from Q2 2024.