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Customers Bancorp Reports Results for Third Quarter 2024

1. Q3 2024 net income decreased to $42.9 million, down 20.9%. 2. Total loans increased by $520.8 million, demonstrating 16% annualized growth. 3. Robust deposit inflows of $1.1 billion offset higher-cost deposits by $0.7 billion. 4. Non-performing assets slightly decreased, maintaining asset quality at 0.22%. 5. CET 1 capital ratio remains healthy at 12.5%, above regulatory targets.

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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

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