CUBI Customers Bancorp Inc

Customers Bancorp, Inc. (NYSE:CUBI):

Fourth Quarter 2023 Highlights

• Q4 2023 net income available to common shareholders was $58.2 million, or $1.79 per diluted share; ROAA was 1.16% and ROCE was 15.93%.
• Q4 2023 core earnings* were $61.6 million, or $1.90 per diluted share; Core ROAA* was 1.22% and Core ROCE* was 16.87%.
• CET 1 capital ratio of 12.2%1 at December 31, 2023, compared to 11.3% at September 30, 2023, surpassing 11.0% - 11.5% target.
• TCE / TA ratio* of 7.0% at December 31, 2023, compared to 6.5% at September 30, 2023, achieving stated target.
• Q4 2023 net interest margin, tax equivalent (“NIM”) was 3.31%, compared to Q3 2023 NIM of 3.70%. Q3 2023 NIM included the benefit of outsized discount accretion of roughly 50 basis points. Normalizing for this outsized accretion, Q4 2023 NIM expanded by 11 basis points.
• Total deposits decreased by $275.1 million in Q4 2023 from Q3 2023 with a significant positive mix shift. Q4 2023 core deposit growth of $1.1 billion funded in part the repayment of maturing wholesale CDs of $0.7 billion and the planned outflow of student-related deposit accounts serviced by BMTX of $0.6 billion.
• Total estimated insured deposits were 77%2 of total deposits at December 31, 2023, with immediately available liquidity covering uninsured deposits by approximately 202%.
• Non-performing assets were $27.2 million, or 0.13% of total assets, at December 31, 2023 compared to 0.14% at September 30, 2023. Allowance for credit losses on loans and leases equaled 499% of non-performing loans at December 31, 2023, compared to 466% at September 30, 2023.
• Q4 2023 provision for credit losses on loans and leases of $13.4 million was lower than Q3 2023 largely driven by lower balances in loans held for investment.
• Q4 2023 book value per share and tangible book value per share* both grew by approximately $2.26, or 5.0% over Q3 2023, driven by strong quarterly earnings combined with decreased AOCI losses of $13.2 million over the same time period.

______________________________________________

*

 

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

1

 

Regulatory capital ratios as of December 31, 2023 are estimates.

2

 

Uninsured deposits (estimate) of $5.4 billion to be reported on the Bank's call report, less deposits of $1.1 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $118.0 million.

Full Year 2023 Highlights

• 2023 net income available to common shareholders was $235.4 million, or $7.32 per diluted share; ROAA was 1.16% and ROCE was 17.33%.
• 2023 core earnings* were $248.2 million, or $7.72 per diluted share; Core ROAA* was 1.22% and Core ROCE* was 18.27%.
• Record 2023 net interest income of $687.4 million.
• CET 1 capital ratio of 12.2%1 at December 31, 2023, compared to 9.6% at December 31, 2022, surpassing 11.0% - 11.5% target.
• TCE / TA ratio* of 7.0% at December 31, 2023, compared to 6.0% at December 31, 2022.
• 2023 NIM was 3.29%, an increase of 10 basis points over 2022 NIM of 3.19%.
• Non-performing assets were $27.2 million, or 0.13% of total assets, at December 31, 2023 compared to $30.8 million, or 0.15% of total assets, at December 31, 2022. Allowance for credit losses on loans and leases equaled 499% of non-performing loans at December 31, 2023, compared to 426% at December 31, 2022.
• Book value per share and tangible book value per share* grew year over year by approximately $8.65 or 22.1%, driven by strong 2023 annual earnings combined with the decreased AOCI losses of $26.5 million over the same time period. Tangible book value per share* has grown at a 15% compound annual growth rate (CAGR) over the past 5 years, significantly higher than the regional bank peer median3 of 4%.
• Repurchased 1,379,883 common shares at a weighted-average price of $28.58 for $39.8 million in 2023.

______________________________________________

*

 

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

1

 

Regulatory capital ratios as of December 31, 2023 are estimates.

2

 

Uninsured deposits (estimate) of $5.4 billion to be reported on the Bank's call report, less deposits of $1.1 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $118.0 million.

3

 

Regional bank peers based on selected 2023 proxy peers with a reporting date on or before January 24, 2024 before market close.

CEO Commentary

“We are pleased to share our fourth quarter and full year 2023 results as we continued to execute on our strategic priorities and delivered again for shareholders,” said Customers Bancorp Chairman and CEO Jay Sidhu. “While the banking industry has stabilized following the challenges in early 2023, higher interest rates and less liquidity in the banking system remain headwinds for all banks. We again demonstrated the sustainability of our differentiated deposit franchise by growing core deposits by $1.1 billion in the fourth quarter which funded in part the repayment of maturing wholesale CDs of $743 million and the planned outflow of student-related deposit accounts serviced by BMTX totaling approximately $637 million. Additional liquidity inflows primarily from sales of investment securities were used to payoff $340 million in callable FHLB advances. The core deposit growth was again broad-based with more than 20 different channels increasing balances and roughly half contributing $25 million or more. Non-interest bearing deposits as a percentage of total deposits remained relatively flat at 25%. Excluding the outsized accretion we experienced in the third quarter, our net interest margin continued to expand in the fourth quarter in contrast to the industry trends. Capital levels continued to increase substantially as evidenced by two consecutive quarters with a 50 basis point increase in our TCE / TA ratio* and a 90 basis point increase in our CET 1 ratio. In the last three quarters, we have increased our TCE / TA ratio* by 110 basis points to 7.0% and our CET 1 ratio by 260 basis points to 12.2%. We remain well-positioned to continue strengthening our deposit franchise, improve our profitability, and maintain our capital ratios,” stated Jay Sidhu.

“Our Q4 2023 GAAP earnings were $58.2 million, or $1.79 per diluted share, and core earnings were $61.6 million, or $1.90 per diluted share, considerably above consensus estimates. At December 31, 2023, our deposit base was well diversified, with approximately 77%2 of total deposits insured. We maintain a strong liquidity position, with $8.5 billion of liquidity immediately available, which covers approximately 202% of uninsured deposits2 and our loan to deposit ratio was 74%. We continue to focus loan production where we have a holistic and primary relationship. We are seeing attractive new origination opportunities. We have ample liquidity and capital, which we plan to deploy in 2024, to support the needs of our customers. At December 31, 2023, we had $3.8 billion of cash on hand, which we believe is prudent balance sheet and liquidity management in the current environment. Asset quality remains exceptional with our NPA ratio down slightly at just 0.13% of total assets and reserve levels are robust at over 499% of total non-performing loans at the end of Q4 2023. Our exposure to higher risk commercial real estate such as the office and retail sectors is minimal, each representing only 1% of the loan portfolio. Continued execution on our strategic priorities has positioned us favorably for success in 2024 from a capital, credit, liquidity, interest rate risk and earnings perspective. We will remain disciplined, but opportunistic, with our balance sheet capacity to minimize risk and maintain robust capital levels. We are extremely proud of the progress we made in 2023 and are confident in our risk management capabilities and ability to provide excellent service to our clients in all operating environments. We are excited and optimistic about the opportunities in 2024 and beyond,” Jay Sidhu continued.

______________________________________________

*

 

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

1

 

Regulatory capital ratios as of December 31, 2023 are estimates.

2

 

Uninsured deposits (estimate) of $5.4 billion to be reported on the Bank's call report, less deposits of $1.1 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $118.0 million.

Financial Highlights

(Dollars in thousands, except per share data)

 

At or Three Months Ended

 

Increase (Decrease)

 

December 31, 2023

 

September 30, 2023

 

Profitability Metrics:

 

 

 

 

 

 

 

 

Net income available for common shareholders

 

$

58,223

 

 

$

82,953

 

 

$

(24,730

)

 

(29.8

)%

Diluted earnings per share

 

$

1.79

 

 

$

2.58

 

 

$

(0.79

)

 

(30.6

)%

Core earnings*

 

$

61,633

 

 

$

83,294

 

 

$

(21,661

)

 

(26.0

)%

Core earnings per share*

 

$

1.90

 

 

$

2.59

 

 

$

(0.69

)

 

(26.6

)%

Return on average assets (“ROAA”)

 

 

1.16

%

 

 

1.57

%

 

 

(0.41

)

 

 

Core ROAA*

 

 

1.22

%

 

 

1.57

%

 

 

(0.35

)

 

 

Return on average common equity (“ROCE”)

 

 

15.93

%

 

 

23.97

%

 

 

(8.04

)

 

 

Core ROCE*

 

 

16.87

%

 

 

24.06

%

 

 

(7.19

)

 

 

Adjusted pre-tax pre-provision net income*

 

$

101,884

 

 

$

128,564

 

 

$

(26,680

)

 

(20.8

)%

Net interest margin, tax equivalent

 

 

3.31

%

 

 

3.70

%

 

 

(0.39

)

 

 

Yield on loans (Loan yield)

 

 

7.30

%

 

 

7.87

%

 

 

(0.57

)

 

 

Cost of deposits

 

 

3.39

%

 

 

3.24

%

 

 

0.15

 

 

 

Efficiency ratio

 

 

49.08

%

 

 

41.01

%

 

 

8.07

 

 

 

Core efficiency ratio*

 

 

46.70

%

 

 

41.04

%

 

 

5.66

 

 

 

Non-interest expense to average total assets

 

 

1.75

%

 

 

1.62

%

 

 

0.13

 

 

 

Core non-interest expense to average total assets*

 

 

1.67

%

 

 

1.62

%

 

 

0.05

 

 

 

Balance Sheet Trends:

 

 

 

 

 

 

 

 

Total assets

 

$

21,316,265

 

 

$

21,857,152

 

 

$

(540,887

)

 

(2.5

)%

Total cash and investment securities

 

$

7,355,156

 

 

$

7,371,551

 

 

$

(16,395

)

 

(0.2

)%

Total loans and leases

 

$

13,202,084

 

 

$

13,713,482

 

 

$

(511,398

)

 

(3.7

)%

Non-interest bearing demand deposits

 

$

4,422,494

 

 

$

4,758,682

 

 

$

(336,188

)

 

(7.1

)%

Total deposits

 

$

17,920,236

 

 

$

18,195,364

 

 

$

(275,128

)

 

(1.5

)%

Capital Metrics:

 

 

 

 

 

 

 

 

Common Equity

 

$

1,500,600

 

 

$

1,423,813

 

 

$

76,787

 

 

5.4

%

Tangible Common Equity*

 

$

1,496,971

 

 

$

1,420,184

 

 

$

76,787

 

 

5.4

%

Common Equity to Total Assets

 

 

7.0

%

 

 

6.5

%

 

 

0.5

 

 

 

Tangible Common Equity to Tangible Assets*

 

 

7.0

%

 

 

6.5

%

 

 

0.5

 

 

 

Book Value per common share

 

$

47.73

 

 

$

45.47

 

 

$

2.26

 

 

5.0

%

Tangible Book Value per common share*

 

$

47.61

 

 

$

45.36

 

 

$

2.25

 

 

5.0

%

Common equity Tier 1 capital ratio (1)

 

 

12.2

%

 

 

11.3

%

 

 

0.9

 

 

 

Total risk based capital ratio (1)

 

 

15.3

%

 

 

14.3

%

 

 

1.0

 

 

 

 

 

 

 

 

 

 

 

 

(1) Regulatory capital ratios as of December 31, 2023 are estimates.

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

Financial Highlights

(Dollars in thousands, except per share data)

 

At or Three Months Ended

 

Increase (Decrease)

 

Twelve Months Ended

 

Increase (Decrease)

 

December 31, 2023

 

December 31, 2022

 

 

December 31, 2023

 

December 31, 2022

 

Profitability Metrics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available for common shareholders

 

$

58,223

 

 

$

25,623

 

 

$

32,600

 

 

127.2

%

 

$

235,448

 

 

$

218,402

 

 

$

17,046

 

 

7.8

%

Diluted earnings per share

 

$

1.79

 

 

$

0.77

 

 

$

1.02

 

 

132.5

%

 

$

7.32

 

 

$

6.51

 

 

$

0.81

 

 

12.4

%

Core earnings*

 

$

61,633

 

 

$

39,368

 

 

$

22,265

 

 

56.6

%

 

$

248,233

 

 

$

256,415

 

 

$

(8,182

)

 

(3.2

)%

Core earnings per share*

 

$

1.90

 

 

$

1.19

 

 

$

0.71

 

 

59.7

%

 

$

7.72

 

 

$

7.63

 

 

$

0.09

 

 

1.2

%

Return on average assets (“ROAA”)

 

 

1.16

%

 

 

0.55

%

 

 

0.61

 

 

 

 

 

1.16

%

 

 

1.13

%

 

 

0.03

 

 

 

Core ROAA*

 

 

1.22

%

 

 

0.81

%

 

 

0.41

 

 

 

 

 

1.22

%

 

 

1.32

%

 

 

(0.10

)

 

 

Return on average common equity (“ROCE”)

 

 

15.93

%

 

 

8.05

%

 

 

7.88

 

 

 

 

 

17.33

%

 

 

17.40

%

 

 

(0.07

)

 

 

Core ROCE*

 

 

16.87

%

 

 

12.36

%

 

 

4.51

 

 

 

 

 

18.27

%

 

 

20.43

%

 

 

(2.16

)

 

 

Adjusted pre-tax pre-provision net income*

 

$

101,884

 

 

$

81,377

 

 

$

20,507

 

 

25.2

%

 

$

416,563

 

 

$

400,712

 

 

$

15,851

 

 

4.0

%

Net interest margin, tax equivalent

 

 

3.31

%

 

 

2.67

%

 

 

0.64

 

 

 

 

 

3.29

%

 

 

3.19

%

 

 

0.10

 

 

 

Yield on loans (Loan yield)

 

 

7.30

%

 

 

5.64

%

 

 

1.66

 

 

 

 

 

7.16

%

 

 

5.00

%

 

 

2.16

 

 

 

Cost of deposits

 

 

3.39

%

 

 

2.73

%

 

 

0.66

 

 

 

 

 

3.27

%

 

 

1.31

%

 

 

1.96

 

 

 

Efficiency ratio

 

 

49.08

%

 

 

49.20

%

 

 

(0.12

)

 

 

 

 

46.49

%

 

 

44.81

%

 

 

1.68

 

 

 

Core efficiency ratio*

 

 

46.70

%

 

 

49.12

%

 

 

(2.42

)

 

 

 

 

45.45

%

 

 

43.02

%

 

 

2.43

 

 

 

Non-interest expense to average total assets

 

 

1.75

%

 

 

1.50

%

 

 

0.25

 

 

 

 

 

1.64

%

 

 

1.51

%

 

 

0.13

 

 

 

Core non-interest expense to average total assets*

 

 

1.67

%

 

 

1.50

%

 

 

0.17

 

 

 

 

 

1.62

%

 

 

1.50

%

 

 

0.12

 

 

 

Balance Sheet Trends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

21,316,265

 

 

$

20,896,112

 

 

$

420,153

 

 

2.0

%

 

 

 

 

 

 

 

 

Total cash and investment securities

 

$

7,355,156

 

 

$

4,283,565

 

 

$

3,071,591

 

 

71.7

%

 

 

 

 

 

 

 

 

Total loans and leases

 

$

13,202,084

 

 

$

15,794,671

 

 

$

(2,592,587

)

 

(16.4

)%

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

$

4,422,494

 

 

$

1,885,045

 

 

$

2,537,449

 

 

134.6

%

 

 

 

 

 

 

 

 

Total deposits

 

$

17,920,236

 

 

$

18,156,953

 

 

$

(236,717

)

 

(1.3

)%

 

 

 

 

 

 

 

 

Capital Metrics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity

 

$

1,500,600

 

 

$

1,265,167

 

 

$

235,433

 

 

18.6

%

 

 

 

 

 

 

 

 

Tangible Common Equity*

 

$

1,496,971

 

 

$

1,261,538

 

 

$

235,433

 

 

18.7

%

 

 

 

 

 

 

 

 

Common Equity to Total Assets

 

 

7.0

%

 

 

6.0

%

 

 

1.0

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity to Tangible Assets*

 

 

7.0

%

 

 

6.0

%

 

 

1.0

 

 

 

 

 

 

 

 

 

 

 

Book Value per common share

 

$

47.73

 

 

$

39.08

 

 

$

8.65

 

 

22.1

%

 

 

 

 

 

 

 

 

Tangible Book Value per common share*

 

$

47.61

 

 

$

38.97

 

 

$

8.64

 

 

22.2

%

 

 

 

 

 

 

 

 

Common equity Tier 1 capital ratio (1)

 

 

12.2

%

 

 

9.6

%

 

 

2.6

 

 

 

 

 

 

 

 

 

 

 

Total risk based capital ratio (1)

 

 

15.3

%

 

 

12.2

%

 

 

3.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Regulatory capital ratios as of December 31, 2023 are estimates.

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

Key Balance Sheet Trends

Loans and Leases

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

(Dollars in thousands)

December 31, 2023

 

% of Total

 

September 30, 2023

 

% of Total

 

December 31, 2022

 

% of Total

Loans and Leases Held for Investment

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial:

 

 

 

 

 

 

 

 

 

 

 

Specialty lending

$

5,006,693

 

38.9

%

 

$

5,422,161

 

40.0

%

 

$

5,412,887

 

35.0

%

Other commercial & industrial

 

1,087,582

 

8.5

 

 

 

1,115,364

 

8.2

 

 

 

1,135,336

 

7.4

 

Loans to mortgage companies

 

1,014,742

 

7.9

 

 

 

1,042,549

 

7.7

 

 

 

1,447,919

 

9.4

 

Multifamily

 

2,138,622

 

16.6

 

 

 

2,130,213

 

15.7

 

 

 

2,213,019

 

14.3

 

Commercial real estate owner occupied

 

797,319

 

6.2

 

 

 

794,815

 

5.9

 

 

 

885,339

 

5.7

 

Loans receivable, PPP

 

74,735

 

0.6

 

 

 

137,063

 

1.0

 

 

 

998,153

 

6.5

 

Commercial real estate non-owner occupied

 

1,177,650

 

9.2

 

 

 

1,178,203

 

8.7

 

 

 

1,290,730

 

8.3

 

Construction

 

166,393

 

1.2

 

 

 

252,588

 

1.8

 

 

 

162,009

 

1.0

 

Total commercial loans and leases

 

11,463,736

 

89.1

 

 

 

12,072,956

 

89.0

 

 

 

13,545,392

 

87.6

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

Residential

 

484,435

 

3.8

 

 

 

483,133

 

3.6

 

 

 

497,952

 

3.3

 

Manufactured housing

 

38,670

 

0.3

 

 

 

40,129

 

0.3

 

 

 

45,076

 

0.3

 

Installment:

 

 

 

 

 

 

 

 

 

 

 

Personal

 

555,533

 

4.3

 

 

 

629,843

 

4.6

 

 

 

964,641

 

6.2

 

Other

 

319,393

 

2.5

 

 

 

337,053

 

2.5

 

 

 

413,298

 

2.7

 

Total installment loans

 

874,926

 

6.8

 

 

 

966,896

 

7.1

 

 

 

1,377,939

 

8.9

 

Total consumer loans

 

1,398,031

 

10.9

 

 

 

1,490,158

 

11.0

 

 

 

1,920,967

 

12.4

 

Total loans and leases held for investment

$

12,861,767

 

100.0

%

 

$

13,563,114

 

100.0

%

 

$

15,466,359

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Loans Held for Sale

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

Multifamily

$

—

 

—

%

 

$

—

 

—

%

 

$

4,079

 

1.2

%

Commercial real estate non-owner occupied

 

—

 

—

 

 

 

—

 

—

 

 

 

—

 

—

 

Total commercial loans and leases

 

—

 

—

 

 

 

—

 

—

 

 

 

4,079

 

1.2

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

Residential

 

1,215

 

0.3

 

 

 

1,005

 

0.7

 

 

 

829

 

0.3

 

Installment:

 

 

 

 

 

 

 

 

 

 

 

Personal

 

151,040

 

44.4

 

 

 

124,848

 

83.0

 

 

 

133,801

 

40.8

 

Other

 

188,062

 

55.3

 

 

 

24,515

 

16.3

 

 

 

189,603

 

57.8

 

Total installment loans

 

339,102

 

99.7

 

 

 

149,363

 

99.3

 

 

 

323,404

 

98.6

 

Total consumer loans

 

340,317

 

100.0

 

 

 

150,368

 

100.0

 

 

 

324,233

 

98.8

 

Total loans held for sale

$

340,317

 

100.0

%

 

$

150,368

 

100.0

%

 

$

328,312

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Total loans and leases portfolio

$

13,202,084

 

 

 

$

13,713,482

 

 

 

$

15,794,671

 

 

Loans and Leases Held for Investment

Loans and leases held for investment were $12.9 billion at December 31, 2023, down $701.3 million, or 5.2%, from September 30, 2023. Specialty lending decreased $415.5 million, or 7.7% quarter-over-quarter, to $5.0 billion. Construction loans decreased $86.2 million, or 34.1% quarter-over-quarter, to $166.4 million. Loans to mortgage companies decreased $27.8 million, or 2.7% quarter-over-quarter due to lower mortgage activity. Consumer installment loans held for investment decreased $92.0 million, or 9.5% quarter-over-quarter, to $874.9 million due to the continued build out of the held-for-sale strategy and de-risking of the held-for-investment loan portfolio in 2023.

Loans and leases held for investment of $12.9 billion at December 31, 2023 was down $2.6 billion, or 16.8%, year-over-year, largely driven by reduced balances in PPP loans of $923.4 million, consumer installment loans of $503.0 million, or 36.5% year-over-year, loans to mortgage companies of $433.2 million and specialty lending of $406.2 million.

Loans Held for Sale

Loans held for sale increased $189.9 million quarter-over-quarter, and were $340.3 million at December 31, 2023 due to the continued build out of the held-for-sale strategy in 2023.

Allowance for Credit Losses on Loans and Leases

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

 

At or Three Months Ended

 

Increase (Decrease)

 

At or Three Months Ended

 

Increase (Decrease)

(Dollars in thousands)

December 31, 2023

 

September 30, 2023

 

 

December 31, 2023

 

December 31, 2022

 

Allowance for credit losses on loans and leases

$

135,311

 

 

$

139,213

 

 

$

(3,902

)

 

$

135,311

 

 

$

130,924

 

 

$

4,387

 

Provision (benefit) for credit losses on loans and leases

$

13,420

 

 

$

17,055

 

 

$

(3,635

)

 

$

13,420

 

 

$

27,891

 

 

$

(14,471

)

Net charge-offs from loans held for investment

$

17,322

 

 

$

17,498

 

 

$

(176

)

 

$

17,322

 

 

$

27,164

 

 

$

(9,842

)

Annualized net charge-offs to average loans and leases

 

0.51

%

 

 

0.50

%

 

 

 

 

0.51

%

 

 

0.70

%

 

 

Coverage of credit loss reserves for loans and leases held for investment

 

1.13

%

 

 

1.10

%

 

 

 

 

1.13

%

 

 

0.93

%

 

 

Net charge-offs were relatively stable with $17.3 million in Q4 2023, compared to $17.5 million in Q3 2023 and decreased compared to $27.2 million in Q4 2022.

Provision (benefit) for Credit Losses

 

Three Months Ended

 

Increase (Decrease)

 

Three Months Ended

 

Increase (Decrease)

 

(Dollars in thousands)

December 31, 2023

 

September 30, 2023

 

 

December 31, 2023

 

December 31, 2022

 

 

Provision for credit losses on loans and leases

$

13,420

 

 

$

17,055

 

$

(3,635

)

 

$

13,420

 

 

$

27,891

 

$

(14,471

)

 

Provision (benefit) for credit losses on available for sale debt securities

 

103

 

 

 

801

 

 

(698

)

 

 

103

 

 

 

325

 

 

(222

)

 

Provision for credit losses

 

13,523

 

 

 

17,856

 

 

(4,333

)

 

 

13,523

 

 

 

28,216

 

 

(14,693

)

 

Provision (benefit) for credit losses on unfunded commitments

 

(136

)

 

 

48

 

 

(184

)

 

 

(136

)

 

 

153

 

 

(289

)

 

Total provision for credit losses

$

13,387

 

 

$

17,904

 

$

(4,517

)

 

$

13,387

 

 

$

28,369

 

$

(14,982

)

 

The provision for credit losses on loans and leases in Q4 2023 was $13.4 million, compared to $17.1 million in Q3 2023 and $27.9 million in Q4 2022. The lower provision in Q4 2023 was primarily due to lower balances in loans held for investment.

The provision for credit losses on available for sale investment securities in Q4 2023 was $0.1 million, compared to provision of $0.8 million in Q3 2023 and $0.3 million in Q4 2022.

Asset Quality

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

(Dollars in thousands)

December 31, 2023

 

September 30, 2023

 

Increase (Decrease)

 

December 31, 2023

 

December 31, 2022

 

Increase (Decrease)

Non-performing assets (“NPAs”):

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual / non-performing loans (“NPLs”)

$

27,110

 

 

$

29,867

 

 

$

(2,757

)

 

$

27,110

 

 

$

30,737

 

 

$

(3,627

)

Non-performing assets

$

27,209

 

 

$

29,970

 

 

$

(2,761

)

 

$

27,209

 

 

$

30,783

 

 

$

(3,574

)

NPLs to total loans and leases

 

0.21

%

 

 

0.22

%

 

 

 

 

0.21

%

 

 

0.19

%

 

 

Reserves to NPLs

 

499.12

%

 

 

466.11

%

 

 

 

 

499.12

%

 

 

425.95

%

 

 

NPAs to total assets

 

0.13

%

 

 

0.14

%

 

 

 

 

0.13

%

 

 

0.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases (1) risk ratings:

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases (2)

 

 

 

 

 

 

 

 

 

 

 

Pass

$

9,955,243

 

 

$

10,503,731

 

 

$

(548,488

)

 

$

9,955,243

 

 

$

10,793,980

 

 

$

(838,737

)

Special Mention

 

196,182

 

 

 

189,329

 

 

 

6,853

 

 

 

196,182

 

 

 

138,829

 

 

 

57,353

 

Substandard

 

339,664

 

 

 

280,267

 

 

 

59,397

 

 

 

339,664

 

 

 

291,118

 

 

 

48,546

 

Total commercial loans and leases

 

10,491,089

 

 

 

10,973,327

 

 

 

(482,238

)

 

 

10,491,089

 

 

 

11,223,927

 

 

 

(732,838

)

Consumer loans

 

 

 

 

 

 

 

 

 

 

 

Performing

 

1,379,603

 

 

 

1,473,493

 

 

 

(93,890

)

 

 

1,379,603

 

 

 

1,899,376

 

 

 

(519,773

)

Non-performing

 

18,428

 

 

 

16,665

 

 

 

1,763

 

 

 

18,428

 

 

 

21,591

 

 

 

(3,163

)

Total consumer loans

 

1,398,031

 

 

 

1,490,158

 

 

 

(92,127

)

 

 

1,398,031

 

 

 

1,920,967

 

 

 

(522,936

)

Loans and leases receivable (1)

$

11,889,120

 

 

$

12,463,485

 

 

$

(574,365

)

 

$

11,889,120

 

 

$

13,144,894

 

 

$

(1,255,774

)

 

 

 

 

 

 

 

 

 

 

 

 

(1) Risk ratings are assigned to loans and leases held for investment, and excludes loans held for sale and loans receivable, mortgage warehouse, at fair value.

(2) Excludes loan receivable, PPP, as eligible PPP loans are fully guaranteed by the Small Business Administration.

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

Total consumer installment loans held for investment at December 31, 2023 were less than 5% of total assets and approximately 7% of total loans and leases held for investment, and were supported by an allowance for credit losses of $56.4 million. At December 31, 2023, the consumer installment portfolio had the following characteristics: average original FICO score of 734, average debt-to-income of 19% and average borrower income of $107 thousand.

Non-performing loans at December 31, 2023 remained relatively stable at 0.21% of total loans and leases, compared to 0.22% at September 30, 2023 and 0.19% at December 31, 2022.

Investment Securities

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

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

(Dollars in thousands)

December 31, 2023

 

September 30, 2023

 

December 31, 2022

Debt securities, available for sale

$

2,376,860

 

$

2,746,729

 

$

2,961,015

Equity securities

 

28,780

 

 

26,478

 

 

26,485

Investment securities, at fair value

 

2,405,640

 

 

2,773,207

 

 

2,987,500

Debt securities, held to maturity

 

1,103,170

 

 

1,178,370

 

 

840,259

Total investment securities portfolio

$

3,508,810

 

$

3,951,577

 

$

3,827,759

Critically important to performance during the recent banking crisis are the characteristics of a bank’s securities portfolio. While there may be virtually no credit risk in some of these portfolios, holding longer term and lower yielding securities is creating challenges for many banks. Customers’ securities portfolio is highly liquid, short in duration, and high in yield. At December 31, 2023, the AFS debt securities portfolio had a spot yield of 5.12%, an effective duration of approximately 1.5 years, and approximately 41% are variable rate. Additionally, 59% of the AFS securities portfolio was AAA rated at December 31, 2023.

At December 31, 2023, the HTM debt securities portfolio represented only 5.2% of total assets at December 31, 2023, had a spot yield of 4.31% and an effective duration of approximately 3.0 years. Additionally, at December 31, 2023, approximately 39% of the HTM securities were AAA rated and 52% were credit enhanced asset backed securities with no current expectation of credit losses.

Deposits

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

(Dollars in thousands)

December 31, 2023

 

% of Total

 

September 30, 2023

 

% of Total

 

December 31, 2022

 

% of Total

Demand, non-interest bearing

$

4,422,494

 

24.7

%

 

$

4,758,682

 

26.2

%

 

$

1,885,045

 

10.4

%

Demand, interest bearing

 

5,580,527

 

31.1

 

 

 

5,824,410

 

32.0

 

 

 

8,476,027

 

46.7

 

Total demand deposits

 

10,003,021

 

55.8

 

 

 

10,583,092

 

58.2

 

 

 

10,361,072

 

57.1

 

Savings

 

1,402,941

 

7.8

 

 

 

1,118,353

 

6.1

 

 

 

811,798

 

4.5

 

Money market

 

3,226,395

 

18.0

 

 

 

2,499,593

 

13.7

 

 

 

2,734,217

 

15.1

 

Time deposits

 

3,287,879

 

18.4

 

 

 

3,994,326

 

22.0

 

 

 

4,249,866

 

23.3

 

Total deposits

$

17,920,236

 

100.0

%

 

$

18,195,364

 

100.0

%

 

$

18,156,953

 

100.0

%

Total deposits decreased $275.1 million, or 1.5%, to $17.9 billion at December 31, 2023 as compared to the prior quarter. Money market deposits increased $726.8 million, or 29.1%, to $3.2 billion and savings deposits increased $284.6 million, or 25.4%, to $1.4 billion. These increases were offset by decreases in time deposits of $706.4 million, or 17.7%, to $3.3 billion, non-interest bearing demand deposits of $336.2 million, or 7.1%, to $4.4 billion and interest bearing demand deposits of $243.9 million, or 4.2%, to $5.6 billion. There was also an outflow of student-related deposit accounts serviced by BMTX of $0.6 billion, including the planned transfer of approximately $430.0 million to a new partner bank on December 1st and expected seasonal outflows of $0.2 billion. The total average cost of deposits increased by 15 basis points to 3.39% in Q4 2023 from 3.24% in the prior quarter largely driven by the increase in market interest rates and a shift in deposit mix during the fourth quarter including the outflow of student-related deposits serviced by BMTX. Total estimated uninsured deposits was $4.2 billion1, or 23% of total deposits (inclusive of accrued interest) at December 31, 2023. Customers is also highly focused on total deposits with contractual term to manage its liquidity profile and the funding of loans and securities.

Total deposits decreased $236.7 million, or 1.3%, to $17.9 billion at December 31, 2023 as compared to a year ago. Non-interest bearing demand deposits increased $2.5 billion, or 134.6%, to $4.4 billion, savings deposits increased $591.1 million, or 72.8%, to $1.4 billion and money market deposits increased $492.2 million, or 18.0%, to $3.2 billion. These increases were offset by decreases in interest bearing demand deposits of $2.9 billion, or 34.2%, to $5.6 billion and time deposits of $962.0 million, or 22.6% to $3.3 billion. The total average cost of deposits increased by 66 basis points to 3.39% in Q4 2023 from 2.73% in the prior year primarily due to higher market interest rates and a shift in deposit mix.

__________________________________

1

  Uninsured deposits (estimate) of $5.4 billion to be reported on the Bank's call report, less deposits of $1.1 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $118.0 million.

Borrowings

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

(Dollars in thousands)

December 31, 2023

 

September 30, 2023

 

December 31, 2022

FHLB advances

$

1,203,207

 

$

1,529,839

 

$

800,000

Senior notes

 

123,840

 

 

123,775

 

 

123,580

Subordinated debt

 

182,230

 

 

182,161

 

 

181,952

Total borrowings

$

1,509,277

 

$

1,835,775

 

$

1,105,532

Total borrowings decreased $326.5 million, or 17.8%, to $1.5 billion at December 31, 2023 as compared to the prior quarter. This decrease primarily resulted from the repayment of $340.0 million in callable FHLB advances. As of December 31, 2023, Customers’ immediately available borrowing capacity with the FRB and FHLB was approximately $6.9 billion, of which $1.2 billion of available capacity was utilized in borrowings and $1.1 billion was utilized to collateralize deposits.

Total borrowings increased $403.7 million, or 36.5%, to $1.5 billion at December 31, 2023 as compared to a year ago. This increase primarily resulted from an increase in FHLB advances to ensure ample cash on hand given the heightened liquidity risk in the banking system, particularly among regional banks since early March 2023, net of repayments of $340.0 million and $510.0 million in callable FHLB advances in Q4 2023 and Q3 2023, respectively.

Capital

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

(Dollars in thousands except per share data)

December 31, 2023

 

September 30, 2023

 

December 31, 2022

Customers Bancorp, Inc.

 

 

 

 

 

Common Equity

$

1,500,600

 

 

$

1,423,813

 

 

$

1,265,167

 

Tangible Common Equity*

$

1,496,971

 

 

$

1,420,184

 

 

$

1,261,538

 

Common Equity to Total Assets

 

7.0

%

 

 

6.5

%

 

 

6.0

%

Tangible Common Equity to Tangible Assets*

 

7.0

%

 

 

6.5

%

 

 

6.0

%

Book Value per common share

$

47.73

 

 

$

45.47

 

 

$

39.08

 

Tangible Book Value per common share*

$

47.61

 

 

$

45.36

 

 

$

38.97

 

Common equity Tier 1 (“CET 1”) capital ratio (1)

 

12.2

%

 

 

11.3

%

 

 

9.6

%

Total risk based capital ratio (1)

 

15.3

%

 

 

14.3

%

 

 

12.2

%

 

 

 

 

 

 

(1) Regulatory capital ratios as of December 31, 2023 are estimates.

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

Customers Bancorp’s common equity increased $76.8 million to $1.5 billion, and tangible common equity* increased $76.8 million to $1.5 billion, at December 31, 2023 compared to the prior quarter, respectively, primarily from earnings of $58.2 million and decreased unrealized losses on investment securities of $13.2 million (net of taxes) deferred in accumulated other comprehensive income (“AOCI”). Similarly, book value per common share increased to $47.73 from $45.47, and tangible book value per common share* increased to $47.61 from $45.36, at December 31, 2023 and September 30, 2023, respectively.

Customers Bancorp’s common equity increased $235.4 million to $1.5 billion, and tangible common equity* increased $235.4 million to $1.5 billion, at December 31, 2023 compared to a year ago, respectively, primarily from earnings of $235.4 million and decreased unrealized losses on investment securities in AOCI of $26.5 million (net of taxes), partially offset by $39.8 million of common share repurchases. Similarly, book value per common share increased to $47.73 from $39.08, and tangible book value per common share* increased to $47.61 from $38.97, at December 31, 2023 and December 31, 2022, respectively.

At the Customers Bancorp level, the CET 1 capital ratio (estimate), total risk based capital ratio (estimate), common equity to total assets ratio and tangible common equity to tangible assets ratio* (“TCE / TA ratio”) were 12.2%, 15.3%, 7.0%, and 7.0%, respectively, at December 31, 2023.

At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At December 31, 2023, Tier 1 capital (estimate) and total risk based capital (estimate) were 13.7% and 15.3%, respectively.

“Even though we remain well capitalized by all regulatory measures, we are committed to maintaining our CET 1 ratio around 11.5% and growing our TCE / TA ratio* to 7.5% in 2024,” stated Jay Sidhu.

Key Profitability Trends

Net Interest Income

Net interest income totaled $172.5 million in Q4 2023, a decrease of $27.3 million from Q3 2023, primarily due to lower interest income from the acquired Venture Banking portfolio that had outsized discount accretion in Q3 2023.

“We experienced continued momentum in net interest income in the fourth quarter, despite elective reductions in loan balances. Loan balance reductions were in part due to exiting certain credits with less attractive pricing and clients without holistic banking relationships. Excluding the outsized accretion recognized in the third quarter on the acquired loan portfolio from the FDIC, our fourth quarter net interest income was in-line relative to the third quarter,” stated Customers Bancorp President Sam Sidhu.

Net interest income totaled $172.5 million in Q4 2023, an increase of $37.4 million from Q4 2022. This increase was due to higher interest income of $76.3 million on variable rate lower credit risk specialty lending verticals, which included the acquired Venture Banking portfolio, investment securities and interest earning deposits, offset in part by higher interest expenses on deposits and other borrowings of $38.9 million primarily resulting from increased market interest rates and higher average balances of other borrowings. Interest-earning asset growth was primarily driven by an increase in interest earning deposits, offset in part by decreases in PPP loans, as the PPP program was substantially completed in Q1 2023, consumer installment loans and commercial loans to mortgage companies. Total consumer installment loans decreased in Q4 2023 as compared to Q4 2022, as installment loans held for investment decreased primarily for risk management purposes and the implementation of a held-for-sale strategy.

Non-Interest Income

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

 

Three Months Ended

 

Increase (Decrease)

 

Three Months Ended

 

Increase (Decrease)

(Dollars in thousands)

December 31, 2023

 

September 30, 2023

 

 

December 31, 2023

 

December 31, 2022

 

Commercial lease income

$

9,035

 

 

$

8,901

 

 

$

134

 

 

$

9,035

 

 

$

8,135

 

 

$

900

 

Loan fees

 

5,926

 

 

 

6,029

 

 

 

(103

)

 

 

5,926

 

 

 

4,017

 

 

 

1,909

 

Bank-owned life insurance

 

2,160

 

 

 

1,973

 

 

 

187

 

 

 

2,160

 

 

 

1,975

 

 

 

185

 

Mortgage warehouse transactional fees

 

927

 

 

 

1,018

 

 

 

(91

)

 

 

927

 

 

 

1,295

 

 

 

(368

)

Gain (loss) on sale of SBA and other loans

 

(91

)

 

 

(348

)

 

 

257

 

 

 

(91

)

 

 

—

 

 

 

(91

)

Net gain (loss) on sale of investment securities

 

(145

)

 

 

(429

)

 

 

284

 

 

 

(145

)

 

 

(16,937

)

 

 

16,792

 

Legal settlement gain

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,519

 

 

 

(7,519

)

Other

 

860

 

 

 

631

 

 

 

229

 

 

 

860

 

 

 

1,341

 

 

 

(481

)

Total non-interest income

$

18,672

 

 

$

17,775

 

 

$

897

 

 

$

18,672

 

 

$

7,345

 

 

$

11,327

 

Non-interest income totaled $18.7 million for Q4 2023, an increase of $0.9 million compared to Q3 2023. The increase was primarily due to decreases in losses on sales of loans and investment securities, and increases in death benefits paid by insurance carriers under bank-owned life insurance policies and commercial lease income.

Non-interest income totaled $18.7 million for Q4 2023, an increase of $11.3 million compared to Q4 2022. The increase was primarily due to a decrease of $16.8 million in net loss realized from the sales of investment securities, and an increase in loan fees of $1.9 million resulting from increased servicing-related revenue and unused line of credit fees, partially offset by a $7.5 million gain from a court-approved settlement with a third party PPP service provider in Q4 2022.

Non-Interest Expense

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

 

Three Months Ended

 

Increase (Decrease)

 

Three Months Ended

 

Increase (Decrease)

(Dollars in thousands)

December 31, 2023

 

September 30, 2023

 

 

December 31, 2023

 

December 31, 2022

 

Salaries and employee benefits

$

33,965

 

$

33,845

 

$

120

 

 

$

33,965

 

$

29,194

 

$

4,771

 

Technology, communication and bank operations

 

16,887

 

 

15,667

 

 

1,220

 

 

 

16,887

 

 

18,604

 

 

(1,717

)

Commercial lease depreciation

 

7,357

 

 

7,338

 

 

19

 

 

 

7,357

 

 

6,518

 

 

839

 

Professional services

 

9,820

 

 

8,569

 

 

1,251

 

 

 

9,820

 

 

6,825

 

 

2,995

 

Loan servicing

 

3,779

 

 

3,858

 

 

(79

)

 

 

3,779

 

 

4,460

 

 

(681

)

Occupancy

 

2,320

 

 

2,471

 

 

(151

)

 

 

2,320

 

 

3,672

 

 

(1,352

)

FDIC assessments, non-income taxes and regulatory fees

 

13,977

 

 

8,551

 

 

5,426

 

 

 

13,977

 

 

2,339

 

 

11,638

 

Advertising and promotion

 

850

 

 

650

 

 

200

 

 

 

850

 

 

1,111

 

 

(261

)

Legal settlement expense

 

—

 

 

4,096

 

 

(4,096

)

 

 

—

 

 

—

 

 

—

 

Other

 

4,812

 

 

4,421

 

 

391

 

 

 

4,812

 

 

5,696

 

 

(884

)

Total non-interest expense

$

93,767

 

$

89,466

 

$

4,301

 

 

$

93,767

 

$

78,419

 

$

15,348

 

Non-interest expenses totaled $93.8 million in Q4 2023, an increase of $4.3 million compared to Q3 2023. The increase was primarily attributable to increases of $5.4 million in FDIC assessments, non-income taxes and regulatory fees resulting from higher FDIC assessments including the special assessment of $3.7 million, $1.3 million in professional fees and $1.2 million in technology, communication and bank operations mostly due to higher processing and software fees offset by lower servicing fees paid to BMTX. These increases were partially offset by $4.1 million of expenses from a settlement with a third party PPP service provider in Q3 2023. Q4 2023 core non-interest expenses* were $89.4 million, flat over Q3 2023.

Non-interest expenses totaled $93.8 million in Q4 2023, an increase of $15.3 million compared to Q4 2022. The increase was primarily attributable to increases of $11.6 million in FDIC assessments, non-income taxes and regulatory fees resulting primarily from higher FDIC assessments including the special assessment of $3.7 million, $4.8 million in salaries and employee benefits primarily due to higher headcount, annual merit increases and severance, and $3.0 million in professional fees. These increases were partially offset by decreases of $1.7 million in deposit servicing-related expenses mostly due to lower servicing fees and the discontinuation of interchange maintenance fees paid to BMTX offset by higher fees for processing and software as a service, and $1.4 million in occupancy mostly due to lower lease and maintenance expenses.

Taxes

Income tax expense decreased by $1.7 million to $21.8 million in Q4 2023 from $23.5 million in Q3 2023 primarily due to lower pre-tax income, partially offset by lower income tax credits.

Income tax expense increased by $14.7 million to $21.8 million in Q4 2023 from $7.1 million in Q4 2022 primarily due to higher pre-tax income and lower income tax credits.

The effective tax rate for Q4 2023 was 26%, and 24% for the full year 2023. Customers expects the full-year 2024 effective tax rate to be approximately 22% to 24%.

Outlook

“Looking forward, our strategy and risk management principles will remain unchanged. We’re focused on managing risk, strengthening our deposit franchise, further improving our profitability and maintaining our higher capital ratios. Our deposits are expected to grow modestly with continued improvement in the quality of deposits, reducing higher cost wholesale deposits with lower cost core deposits. We see attractive opportunities to deploy securities cash flows and cash into franchise-enhancing loan growth in 2024. Core EPS (excluding PPP)* significantly exceeded our target of $6.00 per diluted share and core return on common equity* was well in excess of our target of 15%. We also achieved the tangible book value per share* target of $45.00, inclusive of the impact of AOCI, a full quarter early, ending at $47.61. The management of non-interest expenses remains a priority for us. However, this will not deter us from making investments in deposit teams and new technologies to support efficient and responsible growth in the future. Operating efficiency has and will continue to be a differentiator of our business model, and we will continue to only make investments that generate long-term positive operating leverage and enable the organization to operate at a mid-40’s efficiency ratio. We remain committed to maintaining a CET 1 ratio around 11.5% in 2024, and growing our TCE / TA ratio* to 7.5%. We are committed to 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.

Webcast Date:   Friday, January 26, 2024 Time:   9:00 AM EST

The live audio webcast, presentation slides, and earnings press release will be made available at https://www.customersbank.com/investor-relations/ and at the Customers Bancorp 4th Quarter Earnings Webcast.

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

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

Institutional Background

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

• #5 in top-performing banks with assets between $10 billion and $50 billion in 2022 per American Banker list;
• #34 out of the 100 largest publicly traded banks in 2023 per Forbes; and
• #64 on Fortune Magazine’s 2022 list of the 100 fastest growing companies in America.

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

“Safe Harbor” Statement

In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Customers Bancorp, Inc.’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “project,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.’s control). Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause Customers Bancorp, Inc.’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements, including: a continuation of the recent turmoil in the banking industry, responsive measures taken by us and regulatory authorities to mitigate and manage related risks, regulatory actions taken that address related issues and the costs and obligations associated therewith, such as the FDIC special assessments, the impact of COVID-19 and its variants on the U.S. economy and customer behavior, the impact that changes in the economy have on the performance of our loan and lease portfolio, the market value of our investment securities, the continued success and acceptance of our blockchain payments system, the demand for our products and services and the availability of sources of funding, the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that affect market interest rates and the money supply, actions that we and our customers take in response to these developments and the effects such actions have on our operations, products, services and customer relationships, higher inflation and its impacts, and the effects of any changes in accounting standards or policies. Customers Bancorp, Inc. cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Customers Bancorp, Inc.’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K for the year ended December 31, 2022, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, including any amendments thereto, that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Customers Bancorp, Inc. does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Customers Bancorp, Inc. or by or on behalf of Customers Bank, except as may be required under applicable law.

Q4 2023 Overview

The following table presents a summary of key earnings and performance metrics for the quarter ended December 31, 2023 and the preceding four quarters, and full year 2023 and 2022:

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

 

EARNINGS SUMMARY - UNAUDITED

 

 

 

(Dollars in thousands, except per share data and stock price data)

Q4

 

Q3

 

Q2

 

Q1

 

Q4

 

Twelve Months Ended December 31,

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Profitability Metrics:

 

Net income available to common shareholders

 

$

58,223

 

 

$

82,953

 

 

$

44,007

 

 

$

50,265

 

 

$

25,623

 

 

$

235,448

 

 

$

218,402

 

 

Per share amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

$

1.86

 

 

$

2.65

 

 

$

1.41

 

 

$

1.58

 

 

$

0.79

 

 

$

7.49

 

 

$

6.69

 

 

 

Earnings per share - diluted

$

1.79

 

 

$

2.58

 

 

$

1.39

 

 

$

1.55

 

 

$

0.77

 

 

$

7.32

 

 

$

6.51

 

 

 

Book value per common share (1)

$

47.73

 

 

$

45.47

 

 

$

42.16

 

 

$

41.08

 

 

$

39.08

 

 

$

47.73

 

 

$

39.08

 

 

 

CUBI stock price (1)

$

57.62

 

 

$

34.45

 

 

$

30.26

 

 

$

18.52

 

 

$

28.34

 

 

$

57.62

 

 

$

28.34

 

 

 

CUBI stock price as % of book value (1)

 

121

%

 

 

76

%

 

 

72

%

 

 

45

%

 

 

73

%

 

 

121

%

 

 

73

%

 

Average shares outstanding - basic

 

31,385,043

 

 

 

31,290,581

 

 

 

31,254,125

 

 

 

31,819,203

 

 

 

32,413,459

 

 

 

31,435,647

 

 

 

32,632,751

 

 

Average shares outstanding - diluted

 

32,521,787

 

 

 

32,175,084

 

 

 

31,591,142

 

 

 

32,345,017

 

 

 

33,075,422

 

 

 

32,158,788

 

 

 

33,547,706

 

 

Shares outstanding (1)

 

31,440,906

 

 

 

31,311,254

 

 

 

31,282,318

 

 

 

31,239,750

 

 

 

32,373,697

 

 

 

31,440,906

 

 

 

32,373,697

 

 

Return on average assets (“ROAA”)

 

1.16

%

 

 

1.57

%

 

 

0.88

%

 

 

1.03

%

 

 

0.55

%

 

 

1.16

%

 

 

1.13

%

 

Return on average common equity (“ROCE”)

 

15.93

%

 

 

23.97

%

 

 

13.22

%

 

 

16.00

%

 

 

8.05

%

 

 

17.33

%

 

 

17.40

%

 

Net interest margin, tax equivalent

 

3.31

%

 

 

3.70

%

 

 

3.15

%

 

 

2.96

%

 

 

2.67

%

 

 

3.29

%

 

 

3.19

%

 

Efficiency ratio

 

49.08

%

 

 

41.01

%

 

 

49.25

%

 

 

47.71

%

 

 

49.20

%

 

 

46.49

%

 

 

44.81

%

 

Non-GAAP Profitability Metrics (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core earnings

$

61,633

 

 

$

83,294

 

 

$

52,163

 

 

$

51,143

 

 

$

39,368

 

 

$

248,233

 

 

$

256,415

 

 

Adjusted pre-tax pre-provision net income

$

101,884

 

 

$

128,564

 

 

$

96,833

 

 

$

89,282

 

 

$

81,377

 

 

$

416,563

 

 

$

400,712

 

 

Per share amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core earnings per share - diluted

$

1.90

 

 

$

2.59

 

 

$

1.65

 

 

$

1.58

 

 

$

1.19

 

 

$

7.72

 

 

$

7.63

 

 

 

Tangible book value per common share (1)

$

47.61

 

 

$

45.36

 

 

$

42.04

 

 

$

40.96

 

 

$

38.97

 

 

$

47.61

 

 

$

38.97

 

 

 

CUBI stock price as % of tangible book value (1)

 

121

%

 

 

76

%

 

 

72

%

 

 

45

%

 

 

73

%

 

 

121

%

 

 

73

%

 

Core ROAA

 

1.22

%

 

 

1.57

%

 

 

1.03

%

 

 

1.05

%

 

 

0.81

%

 

 

1.22

%

 

 

1.32

%

 

Core ROCE

 

16.87

%

 

 

24.06

%

 

 

15.67

%

 

 

16.28

%

 

 

12.36

%

 

 

18.27

%

 

 

20.43

%

 

Adjusted ROAA - pre-tax and pre-provision

 

1.90

%

 

 

2.32

%

 

 

1.79

%

 

 

1.72

%

 

 

1.56

%

 

 

1.94

%

 

 

1.99

%

 

Adjusted ROCE - pre-tax and pre-provision

 

26.82

%

 

 

36.04

%

 

 

28.01

%

 

 

27.33

%

 

 

24.59

%

 

 

29.58

%

 

 

31.16

%

 

Net interest margin, tax equivalent, excluding PPP loans

 

3.33

%

 

 

3.75

%

 

 

3.20

%

 

 

2.80

%

 

 

2.87

%

 

 

3.28

%

 

 

3.16

%

 

Core efficiency ratio

 

46.70

%

 

 

41.04

%

 

 

47.84

%

 

 

47.09

%

 

 

49.12

%

 

 

45.45

%

 

 

43.02

%

 

Asset Quality:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs

$

17,322

 

 

$

17,498

 

 

$

15,564

 

 

$

18,651

 

 

$

27,164

 

 

$

69,035

 

 

$

66,368

 

 

Annualized net charge-offs to average total loans and leases

 

0.51

%

 

 

0.50

%

 

 

0.42

%

 

 

0.49

%

 

 

0.70

%

 

 

0.48

%

 

 

0.45

%

 

Non-performing loans (“NPLs”) to total loans and leases (1)

 

0.21

%

 

 

0.22

%

 

 

0.20

%

 

 

0.21

%

 

 

0.19

%

 

 

0.21

%

 

 

0.19

%

 

Reserves to NPLs (1)

 

499.12

%

 

 

466.11

%

 

 

494.46

%

 

 

405.56

%

 

 

425.95

%

 

 

499.12

%

 

 

425.95

%

 

Non-performing assets (“NPAs”) to total assets

 

0.13

%

 

 

0.14

%

 

 

0.13

%

 

 

0.15

%

 

 

0.15

%

 

 

0.13

%

 

 

0.15

%

 

Customers Bank Capital Ratios (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital to risk-weighted assets

 

13.7

%

 

 

12.97

%

 

 

11.96

%

 

 

11.31

%

 

 

11.21

%

 

 

13.7

%

 

 

11.21

%

 

Tier 1 capital to risk-weighted assets

 

13.7

%

 

 

12.97

%

 

 

11.96

%

 

 

11.31

%

 

 

11.21

%

 

 

13.7

%

 

 

11.21

%

 

Total capital to risk-weighted assets

 

15.3

%

 

 

14.45

%

 

 

13.38

%

 

 

12.64

%

 

 

12.40

%

 

 

15.3

%

 

 

12.40

%

 

Tier 1 capital to average assets (leverage ratio)

 

8.7

%

 

 

8.25

%

 

 

8.00

%

 

 

8.09

%

 

 

8.15

%

 

 

8.7

%

 

 

8.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Metric is a spot balance for the last day of each quarter presented.

 

(2) Customers' reasons for the use of these non-GAAP measures and a detailed reconciliation between the non-GAAP measures and the comparable GAAP amounts are included at the end of this document.

 

(3) Regulatory capital ratios are estimated for Q4 2023 and actual for the remaining periods. In accordance with regulatory capital rules, Customers elected to apply the CECL capital transition provisions which delayed the effects of CECL on regulatory capital for two years until January 1, 2022, followed by a three-year transition period. The cumulative CECL capital transition impact as of December 31, 2021 which amounted to $61.6 million will be phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of December 31, 2023, our regulatory capital ratios reflected 50%, or $30.8 million, benefit associated with the CECL transition provisions.

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

Q4

 

Q3

 

Q2

 

Q1

 

Q4

 

December 31,

 

2023

 

2023

 

2023

 

2023

 

2022

 

2023

 

2022

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

$

239,453

 

 

$

271,107

 

 

$

241,745

 

 

$

244,212

 

$

217,471

 

 

$

996,517

 

 

$

743,949

 

Investment securities

 

51,074

 

 

 

54,243

 

 

 

48,026

 

 

 

47,316

 

 

42,953

 

 

 

200,659

 

 

 

119,236

 

Interest earning deposits

 

44,104

 

 

 

43,800

 

 

 

27,624

 

 

 

10,395

 

 

6,754

 

 

 

125,923

 

 

 

10,952

 

Loans held for sale

 

8,707

 

 

 

4,664

 

 

 

11,149

 

 

 

11,701

 

 

1,269

 

 

 

36,221

 

 

 

1,364

 

Other

 

2,577

 

 

 

2,526

 

 

 

1,616

 

 

 

1,321

 

 

1,200

 

 

 

8,040

 

 

 

9,872

 

Total interest income

 

345,915

 

 

 

376,340

 

 

 

330,160

 

 

 

314,945

 

 

269,647

 

 

 

1,367,360

 

 

 

885,373

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

150,307

 

 

 

145,825

 

 

 

136,375

 

 

 

143,930

 

 

124,366

 

 

 

576,437

 

 

 

226,239

 

FHLB advances

 

18,868

 

 

 

26,485

 

 

 

24,285

 

 

 

10,370

 

 

4,464

 

 

 

80,008

 

 

 

11,464

 

FRB advances

 

—

 

 

 

—

 

 

 

—

 

 

 

6,286

 

 

—

 

 

 

6,286

 

 

 

—

 

Subordinated debt

 

2,688

 

 

 

2,689

 

 

 

2,689

 

 

 

2,689

 

 

2,688

 

 

 

10,755

 

 

 

10,755

 

Other borrowings

 

1,546

 

 

 

1,568

 

 

 

1,540

 

 

 

1,771

 

 

2,992

 

 

 

6,425

 

 

 

13,195

 

Total interest expense

 

173,409

 

 

 

176,567

 

 

 

164,889

 

 

 

165,046

 

 

134,510

 

 

 

679,911

 

 

 

261,653

 

Net interest income

 

172,506

 

 

 

199,773

 

 

 

165,271

 

 

 

149,899

 

 

135,137

 

 

 

687,449

 

 

 

623,720

 

Provision for credit losses

 

13,523

 

 

 

17,856

 

 

 

23,629

 

 

 

19,603

 

 

28,216

 

 

 

74,611

 

 

 

60,066

 

Net interest income after provision for credit losses

 

158,983

 

 

 

181,917

 

 

 

141,642

 

 

 

130,296

 

 

106,921

 

 

 

612,838

 

 

 

563,654

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial lease income

 

9,035

 

 

 

8,901

 

 

 

8,917

 

 

 

9,326

 

 

8,135

 

 

 

36,179

 

 

 

27,719

 

Loan fees

 

5,926

 

 

 

6,029

 

 

 

4,271

 

 

 

3,990

 

 

4,017

 

 

 

20,216

 

 

 

12,188

 

Bank-owned life insurance

 

2,160

 

 

 

1,973

 

 

 

4,997

 

 

 

2,647

 

 

1,975

 

 

 

11,777

 

 

 

15,697

 

Mortgage warehouse transactional fees

 

927

 

 

 

1,018

 

 

 

1,376

 

 

 

1,074

 

 

1,295

 

 

 

4,395

 

 

 

6,738

 

Gain (loss) on sale of SBA and other loans

 

(91

)

 

 

(348

)

 

 

(761

)

 

 

—

 

 

—

 

 

 

(1,200

)

 

 

3,155

 

Loss on sale of capital call lines of credit

 

—

 

 

 

—

 

 

 

(5,037

)

 

 

—

 

 

—

 

 

 

(5,037

)

 

 

—

 

Loss on sale of consumer installment loans

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

(23,465

)

Net gain (loss) on sale of investment securities

 

(145

)

 

 

(429

)

 

 

—

 

 

 

—

 

 

(16,937

)

 

 

(574

)

 

 

(23,164

)

Legal settlement gain

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

7,519

 

 

 

—

 

 

 

7,519

 

Other

 

860

 

 

 

631

 

 

 

2,234

 

 

 

1,084

 

 

1,341

 

 

 

4,809

 

 

 

5,885

 

Total non-interest income

 

18,672

 

 

 

17,775

 

 

 

15,997

 

 

 

18,121

 

 

7,345

 

 

 

70,565

 

 

 

32,272

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

33,965

 

 

 

33,845

 

 

 

33,120

 

 

 

32,345

 

 

29,194

 

 

 

133,275

 

 

 

112,365

 

Technology, communication and bank operations

 

16,887

 

 

 

15,667

 

 

 

16,407

 

 

 

16,589

 

 

18,604

 

 

 

65,550

 

 

 

84,998

 

Commercial lease depreciation

 

7,357

 

 

 

7,338

 

 

 

7,328

 

 

 

7,875

 

 

6,518

 

 

 

29,898

 

 

 

22,978

 

Professional services

 

9,820

 

 

 

8,569

 

 

 

9,192

 

 

 

7,596

 

 

6,825

 

 

 

35,177

 

 

 

27,465

 

Loan servicing

 

3,779

 

 

 

3,858

 

 

 

4,777

 

 

 

4,661

 

 

4,460

 

 

 

17,075

 

 

 

15,023

 

Occupancy

 

2,320

 

 

 

2,471

 

 

 

2,519

 

 

 

2,760

 

 

3,672

 

 

 

10,070

 

 

 

13,606

 

FDIC assessments, non-income taxes and regulatory fees

 

13,977

 

 

 

8,551

 

 

 

9,780

 

 

 

2,728

 

 

2,339

 

 

 

35,036

 

 

 

8,869

 

Advertising and promotion

 

850

 

 

 

650

 

 

 

546

 

 

 

1,049

 

 

1,111

 

 

 

3,095

 

 

 

2,541

 

Legal settlement expense

 

—

 

 

 

4,096

 

 

 

—

 

 

 

—

 

 

—

 

 

 

4,096

 

 

 

—

 

Other

 

4,812

 

 

 

4,421

 

 

 

5,628

 

 

 

4,530

 

 

5,696

 

 

 

19,391

 

 

 

16,784

 

Total non-interest expense

 

93,767

 

 

 

89,466

 

 

 

89,297

 

 

 

80,133

 

 

78,419

 

 

 

352,663

 

 

 

304,629

 

Income before income tax expense

 

83,888

 

 

 

110,226

 

 

 

68,342

 

 

 

68,284

 

 

35,847

 

 

 

330,740

 

 

 

291,297

 

Income tax expense

 

21,796

 

 

 

23,470

 

 

 

20,768

 

 

 

14,563

 

 

7,136

 

 

 

80,597

 

 

 

63,263

 

Net income

 

62,092

 

 

 

86,756

 

 

 

47,574

 

 

 

53,721

 

 

28,711

 

 

 

250,143

 

 

 

228,034

 

Preferred stock dividends

 

3,869

 

 

 

3,803

 

 

 

3,567

 

 

 

3,456

 

 

3,088

 

 

 

14,695

 

 

 

9,632

 

Net income available to common shareholders

$

58,223

 

 

$

82,953

 

 

$

44,007

 

 

$

50,265

 

$

25,623

 

 

$

235,448

 

 

$

218,402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

1.86

 

 

$

2.65

 

 

$

1.41

 

 

$

1.58

 

$

0.79

 

 

$

7.49

 

 

$

6.69

 

Diluted earnings per common share

 

1.79

 

 

 

2.58

 

 

 

1.39

 

 

 

1.55

 

 

0.77

 

 

 

7.32

 

 

 

6.51

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET - UNAUDITED

(Dollars in thousands)

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

45,210

 

 

$

68,288

 

 

$

54,127

 

 

$

77,251

 

 

$

58,025

 

Interest earning deposits

 

3,801,136

 

 

 

3,351,686

 

 

 

3,101,097

 

 

 

1,969,434

 

 

 

397,781

 

Cash and cash equivalents

 

3,846,346

 

 

 

3,419,974

 

 

 

3,155,224

 

 

 

2,046,685

 

 

 

455,806

 

Investment securities, at fair value

 

2,405,640

 

 

 

2,773,207

 

 

 

2,824,638

 

 

 

2,926,969

 

 

 

2,987,500

 

Investment securities held to maturity

 

1,103,170

 

 

 

1,178,370

 

 

 

1,258,560

 

 

 

870,294

 

 

 

840,259

 

Loans held for sale

 

340,317

 

 

 

150,368

 

 

 

78,108

 

 

 

424,057

 

 

 

328,312

 

Loans receivable, mortgage warehouse, at fair value

 

897,912

 

 

 

962,566

 

 

 

1,006,268

 

 

 

1,247,367

 

 

 

1,323,312

 

Loans receivable, PPP

 

74,735

 

 

 

137,063

 

 

 

188,763

 

 

 

246,258

 

 

 

998,153

 

Loans and leases receivable

 

11,889,120

 

 

 

12,463,485

 

 

 

12,637,768

 

 

 

13,145,352

 

 

 

13,144,894

 

Allowance for credit losses on loans and leases

 

(135,311

)

 

 

(139,213

)

 

 

(139,656

)

 

 

(130,281

)

 

 

(130,924

)

Total loans and leases receivable, net of allowance for credit losses on loans and leases

 

12,726,456

 

 

 

13,423,901

 

 

 

13,693,143

 

 

 

14,508,696

 

 

 

15,335,435

 

FHLB, Federal Reserve Bank, and other restricted stock

 

109,548

 

 

 

126,098

 

 

 

126,240

 

 

 

124,733

 

 

 

74,196

 

Accrued interest receivable

 

114,766

 

 

 

123,984

 

 

 

119,501

 

 

 

123,754

 

 

 

123,374

 

Bank premises and equipment, net

 

7,371

 

 

 

7,789

 

 

 

8,031

 

 

 

8,581

 

 

 

9,025

 

Bank-owned life insurance

 

292,193

 

 

 

291,670

 

 

 

290,322

 

 

 

339,607

 

 

 

338,441

 

Goodwill and other intangibles

 

3,629

 

 

 

3,629

 

 

 

3,629

 

 

 

3,629

 

 

 

3,629

 

Other assets

 

366,829

 

 

 

358,162

 

 

 

471,169

 

 

 

374,609

 

 

 

400,135

 

Total assets

$

21,316,265

 

 

$

21,857,152

 

 

$

22,028,565

 

 

$

21,751,614

 

 

$

20,896,112

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Demand, non-interest bearing deposits

$

4,422,494

 

 

$

4,758,682

 

 

$

4,490,198

 

 

$

3,487,517

 

 

$

1,885,045

 

Interest bearing deposits

 

13,497,742

 

 

 

13,436,682

 

 

 

13,460,233

 

 

 

14,236,100

 

 

 

16,271,908

 

Total deposits

 

17,920,236

 

 

 

18,195,364

 

 

 

17,950,431

 

 

 

17,723,617

 

 

 

18,156,953

 

FHLB advances

 

1,203,207

 

 

 

1,529,839

 

 

 

2,046,142

 

 

 

2,052,143

 

 

 

800,000

 

Other borrowings

 

123,840

 

 

 

123,775

 

 

 

123,710

 

 

 

123,645

 

 

 

123,580

 

Subordinated debt

 

182,230

 

 

 

182,161

 

 

 

182,091

 

 

 

182,021

 

 

 

181,952

 

Accrued interest payable and other liabilities

 

248,358

 

 

 

264,406

 

 

 

269,539

 

 

 

249,168

 

 

 

230,666

 

Total liabilities

 

19,677,871

 

 

 

20,295,545

 

 

 

20,571,913

 

 

 

20,330,594

 

 

 

19,493,151

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

137,794

 

 

 

137,794

 

 

 

137,794

 

 

 

137,794

 

 

 

137,794

 

Common stock

 

35,459

 

 

 

35,330

 

 

 

35,301

 

 

 

35,258

 

 

 

35,012

 

Additional paid in capital

 

564,538

 

 

 

559,346

 

 

 

555,737

 

 

 

552,255

 

 

 

551,721

 

Retained earnings

 

1,159,582

 

 

 

1,101,359

 

 

 

1,018,406

 

 

 

974,399

 

 

 

924,134

 

Accumulated other comprehensive income (loss), net

 

(136,569

)

 

 

(149,812

)

 

 

(168,176

)

 

 

(156,276

)

 

 

(163,096

)

Treasury stock, at cost

 

(122,410

)

 

 

(122,410

)

 

 

(122,410

)

 

 

(122,410

)

 

 

(82,604

)

Total shareholders’ equity

 

1,638,394

 

 

 

1,561,607

 

 

 

1,456,652

 

 

 

1,421,020

 

 

 

1,402,961

 

Total liabilities and shareholders’ equity

$

21,316,265

 

 

$

21,857,152

 

 

$

22,028,565

 

 

$

21,751,614

 

 

$

20,896,112

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

 

Average Balance

 

Interest Income or Expense

 

Average Yield or Cost (%)

 

Average Balance

 

Interest Income or Expense

 

Average Yield or Cost (%)

 

Average Balance

 

Interest Income or Expense

 

Average Yield or Cost (%)

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning deposits

$

3,191,677

 

$

44,104

 

5.48

%

 

$

3,211,753

 

$

43,800

 

5.41

%

 

$

693,563

 

$

6,754

 

3.86

%

Investment securities (1)

 

4,007,418

 

 

51,074

 

5.10

%

 

 

4,240,116

 

 

54,243

 

5.12

%

 

 

4,061,555

 

 

42,953

 

4.23

%

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specialty lending loans and leases (2)

 

5,574,149

 

 

130,838

 

9.31

%

 

 

5,717,252

 

 

157,671

 

10.94

%

 

 

5,529,567

 

 

90,885

 

6.52

%

Other commercial & industrial loans (2)

 

1,550,201

 

 

27,214

 

6.96

%

 

 

1,613,614

 

 

28,012

 

6.89

%

 

 

1,670,000

 

 

22,796

 

5.42

%

Commercial loans to mortgage companies

 

997,353

 

 

13,726

 

5.46

%

 

 

1,159,698

 

 

16,916

 

5.79

%

 

 

1,376,760

 

 

17,701

 

5.10

%

Multifamily loans

 

2,131,750

 

 

22,347

 

4.16

%

 

 

2,141,384

 

 

21,292

 

3.94

%

 

 

2,235,885

 

 

22,481

 

3.99

%

Loans receivable, PPP

 

115,851

 

 

839

 

2.87

%

 

 

166,164

 

 

604

 

1.44

%

 

 

1,065,919

 

 

7,249

 

2.70

%

Non-owner occupied commercial real estate loans

 

1,392,684

 

 

20,686

 

5.89

%

 

 

1,425,831

 

 

21,208

 

5.90

%

 

 

1,430,420

 

 

18,536

 

5.14

%

Residential mortgages

 

526,422

 

 

5,942

 

4.48

%

 

 

528,022

 

 

5,965

 

4.48

%

 

 

524,344

 

 

5,462

 

4.13

%

Installment loans

 

1,198,043

 

 

26,568

 

8.80

%

 

 

1,147,069

 

 

24,103

 

8.34

%

 

 

1,555,108

 

 

33,630

 

8.58

%

Total loans and leases (3)

 

13,486,453

 

 

248,160

 

7.30

%

 

 

13,899,034

 

 

275,771

 

7.87

%

 

 

15,388,003

 

 

218,740

 

5.64

%

Other interest-earning assets

 

116,756

 

 

2,577

 

8.75

%

 

 

134,416

 

 

2,526

 

7.45

%

 

 

67,907

 

 

1,200

 

7.01

%

Total interest-earning assets

 

20,802,304

 

 

345,915

 

6.61

%

 

 

21,485,319

 

 

376,340

 

6.96

%

 

 

20,211,028

 

 

269,647

 

5.30

%

Non-interest-earning assets

 

449,969

 

 

 

 

 

 

492,691

 

 

 

 

 

 

506,334

 

 

 

 

Total assets

$

21,252,273

 

 

 

 

 

$

21,978,010

 

 

 

 

 

$

20,717,362

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking accounts

$

5,656,212

 

$

62,041

 

4.35

%

 

$

5,758,215

 

$

58,637

 

4.04

%

 

$

8,536,962

 

$

70,041

 

3.26

%

Money market deposit accounts

 

2,802,309

 

 

29,990

 

4.25

%

 

 

2,181,184

 

 

22,983

 

4.18

%

 

 

3,094,206

 

 

21,220

 

2.72

%

Other savings accounts

 

1,218,118

 

 

13,849

 

4.51

%

 

 

1,077,298

 

 

11,582

 

4.27

%

 

 

669,466

 

 

3,368

 

2.00

%

Certificates of deposit

 

3,625,311

 

 

44,427

 

4.86

%

 

 

4,466,522

 

 

52,623

 

4.67

%

 

 

3,259,801

 

 

29,737

 

3.62

%

Total interest-bearing deposits (4)

 

13,301,950

 

 

150,307

 

4.48

%

 

 

13,483,219

 

 

145,825

 

4.29

%

 

 

15,560,435

 

 

124,366

 

3.17

%

Federal funds purchased

 

—

 

 

—

 

—

%

 

 

—

 

 

—

 

—

%

 

 

151,467

 

 

1,437

 

3.76

%

Borrowings

 

1,816,047

 

 

23,102

 

5.05

%

 

 

2,328,955

 

 

30,742

 

5.24

%

 

 

819,032

 

 

8,707

 

4.22

%

Total interest-bearing liabilities

 

15,117,997

 

 

173,409

 

4.55

%

 

 

15,812,174

 

 

176,567

 

4.43

%

 

 

16,530,934

 

 

134,510

 

3.23

%

Non-interest-bearing deposits (4)

 

4,270,557

 

 

 

 

 

 

4,347,977

 

 

 

 

 

 

2,514,316

 

 

 

 

Total deposits and borrowings

 

19,388,554

 

 

 

3.55

%

 

 

20,160,151

 

 

 

3.48

%

 

 

19,045,250

 

 

 

2.80

%

Other non-interest-bearing liabilities

 

276,198

 

 

 

 

 

 

306,822

 

 

 

 

 

 

271,129

 

 

 

 

Total liabilities

 

19,664,752

 

 

 

 

 

 

20,466,973

 

 

 

 

 

 

19,316,379

 

 

 

 

Shareholders’ equity

 

1,587,521

 

 

 

 

 

 

1,511,037

 

 

 

 

 

 

1,400,983

 

 

 

 

Total liabilities and shareholders’ equity

$

21,252,273

 

 

 

 

 

$

21,978,010

 

 

 

 

 

$

20,717,362

 

 

 

 

Net interest income

 

 

 

172,506

 

 

 

 

 

 

199,773

 

 

 

 

 

 

135,137

 

 

Tax-equivalent adjustment

 

 

 

398

 

 

 

 

 

 

405

 

 

 

 

 

 

342

 

 

Net interest earnings

 

 

$

172,904

 

 

 

 

 

$

200,178

 

 

 

 

 

$

135,479

 

 

Interest spread

 

 

 

 

3.06

%

 

 

 

 

 

3.48

%

 

 

 

 

 

2.50

%

Net interest margin

 

 

 

 

3.30

%

 

 

 

 

 

3.70

%

 

 

 

 

 

2.66

%

Net interest margin tax equivalent

 

 

 

 

3.31

%

 

 

 

 

 

3.70

%

 

 

 

 

 

2.67

%

Net interest margin tax equivalent excl. PPP (5)

 

 

 

 

3.33

%

 

 

 

 

 

3.75

%

 

 

 

 

 

2.87

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.

(2) Includes owner occupied commercial real estate loans.

(3) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.

(4) Total costs of deposits (including interest bearing and non-interest bearing) were 3.39%, 3.24% and 2.73% for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022, respectively.

(5) Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022, presented to approximate interest income as a taxable asset and excluding net interest income from PPP loans and related borrowings, along with the related PPP loan balances and PPP fees receivable from interest-earning assets. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED (CONTINUED)

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

December 31, 2023

 

December 31, 2022

 

Average Balance

 

Interest Income or Expense

 

Average Yield or Cost (%)

 

Average Balance

 

Interest Income or Expense

 

Average Yield or Cost (%)

Assets

 

 

 

 

 

 

 

 

 

 

 

Interest earning deposits

$

2,375,488

 

$

125,923

 

5.30

%

 

$

620,071

 

$

10,952

 

1.77

%

Investment securities (1)

 

4,057,564

 

 

200,659

 

4.95

%

 

 

3,992,934

 

 

119,236

 

2.99

%

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial:

Specialty lending loans and leases (2)

5,704,220

513,976

9.01

%

4,357,995

218,189

5.01

%

Other commercial & industrial loans (2)

 

1,634,937

 

 

106,824

 

6.53

%

 

 

1,540,435

 

 

69,564

 

4.52

%

Commercial loans to mortgage companies

 

1,179,141

 

 

67,660

 

5.74

%

 

 

1,682,471

 

 

64,413

 

3.83

%

Multifamily loans

 

2,165,067

 

 

85,204

 

3.94

%

 

 

1,957,672

 

 

73,987

 

3.78

%

Loans receivable, PPP

 

341,987

 

 

26,627

 

7.79

%

 

 

1,724,659

 

 

79,381

 

4.60

%

Non-owner occupied commercial real estate loans

 

1,423,929

 

 

81,970

 

5.76

%

 

 

1,356,086

 

 

59,087

 

4.36

%

Residential mortgages

 

533,213

 

 

23,240

 

4.36

%

 

 

492,870

 

 

19,048

 

3.86

%

Installment loans

 

1,437,078

 

 

127,237

 

8.85

%

 

 

1,798,977

 

 

161,644

 

8.99

%

Total loans and leases (3)

 

14,419,572

 

 

1,032,738

 

7.16

%

 

 

14,911,165

 

 

745,313

 

5.00

%

Other interest-earning assets

 

118,574

 

 

8,040

 

6.78

%

 

 

64,204

 

 

9,872

 

NM (6)

Total interest-earning assets

 

20,971,198

 

 

1,367,360

 

6.52

%

 

 

19,588,374

 

 

885,373

 

4.52

%

Non-interest-earning assets

 

515,185

 

 

 

 

 

 

521,370

 

 

 

 

Total assets

$

21,486,383

 

 

 

 

 

$

20,109,744

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Interest checking accounts

$

6,048,797

 

$

241,025

 

3.98

%

 

$

6,853,533

 

$

125,100

 

1.83

%

Money market deposit accounts

 

2,358,437

 

 

93,434

 

3.96

%

 

 

4,615,574

 

 

57,765

 

1.25

%

Other savings accounts

 

1,029,951

 

 

41,556

 

4.03

%

 

 

716,838

 

 

6,727

 

0.94

%

Certificates of deposit

 

4,401,855

 

 

200,422

 

4.55

%

 

 

1,352,787

 

 

36,647

 

2.71

%

Total interest-bearing deposits (4)

 

13,839,040

 

 

576,437

 

4.17

%

 

 

13,538,732

 

 

226,239

 

1.67

%

Federal funds purchased

 

3,781

 

 

188

 

4.97

%

 

 

349,581

 

 

5,811

 

1.66

%

Borrowings

 

2,073,553

 

 

103,286

 

4.98

%

 

 

792,563

 

 

29,603

 

3.74

%

Total interest-bearing liabilities

 

15,916,374

 

 

679,911

 

4.27

%

 

 

14,680,876

 

 

261,653

 

1.78

%

Non-interest-bearing deposits (4)

 

3,801,053

 

 

 

 

 

 

3,780,185

 

 

 

 

Total deposits and borrowings

 

19,717,427

 

 

 

3.45

%

 

 

18,461,061

 

 

 

1.42

%

Other non-interest-bearing liabilities

 

272,599

 

 

 

 

 

 

255,911

 

 

 

 

Total liabilities

 

19,990,026

 

 

 

 

 

 

18,716,972

 

 

 

 

Shareholders’ equity

 

1,496,357

 

 

 

 

 

 

1,392,772

 

 

 

 

Total liabilities and shareholders’ equity

$

21,486,383

 

 

 

 

 

$

20,109,744

 

 

 

 

Net interest income

 

 

 

687,449

 

 

 

 

 

 

623,720

 

 

Tax-equivalent adjustment

 

 

 

1,568

 

 

 

 

 

 

1,185

 

 

Net interest earnings

 

 

$

689,017

 

 

 

 

 

$

624,905

 

 

Interest spread

 

 

 

 

3.07

%

 

 

 

 

 

3.10

%

Net interest margin

 

 

 

 

3.28

%

 

 

 

 

 

3.18

%

Net interest margin tax equivalent

 

 

 

 

3.29

%

 

 

 

 

 

3.19

%

Net interest margin tax equivalent excl. PPP (5)

 

 

 

 

3.28

%

 

 

 

 

 

3.16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.

(2) Includes owner occupied commercial real estate loans.

(3) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.

(4) Total costs of deposits (including interest bearing and non-interest bearing) were 3.27% and 1.31% for the twelve months ended December 31, 2023 and 2022, respectively.

(5) Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of 26% for the twelve months ended December 31, 2023 and 2022, presented to approximate interest income as a taxable asset and excluding net interest income from PPP loans and related borrowings, along with the related PPP loan balances and PPP fees receivable from interest-earning assets. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.

(6) Not meaningful.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

2023

 

2023

 

2023

 

2023

 

2022

Loans and leases held for investment

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Commercial & industrial:

 

 

 

 

 

 

 

 

 

Specialty lending

$

5,006,693

 

$

5,422,161

 

$

5,534,832

 

$

5,519,176

 

$

5,412,887

Other commercial & industrial

 

1,087,582

 

 

1,115,364

 

 

1,052,145

 

 

1,168,161

 

 

1,135,336

Loans to mortgage companies

 

1,014,742

 

 

1,042,549

 

 

1,108,598

 

 

1,374,894

 

 

1,447,919

Multifamily

 

2,138,622

 

 

2,130,213

 

 

2,151,734

 

 

2,195,211

 

 

2,213,019

Commercial real estate owner occupied

 

797,319

 

 

794,815

 

 

842,042

 

 

895,314

 

 

885,339

Loans receivable, PPP

 

74,735

 

 

137,063

 

 

188,763

 

 

246,258

 

 

998,153

Commercial real estate non-owner occupied

 

1,177,650

 

 

1,178,203

 

 

1,211,091

 

 

1,245,248

 

 

1,290,730

Construction

 

166,393

 

 

252,588

 

 

212,214

 

 

188,123

 

 

162,009

Total commercial loans and leases

 

11,463,736

 

 

12,072,956

 

 

12,301,419

 

 

12,832,385

 

 

13,545,392

Consumer:

 

 

 

 

 

 

 

 

 

Residential

 

484,435

 

 

483,133

 

 

487,199

 

 

494,815

 

 

497,952

Manufactured housing

 

38,670

 

 

40,129

 

 

41,664

 

 

43,272

 

 

45,076

Installment:

 

 

 

 

 

 

 

 

 

Personal

 

555,533

 

 

629,843

 

 

752,470

 

 

849,420

 

 

964,641

Other

 

319,393

 

 

337,053

 

 

250,047

 

 

419,085

 

 

413,298

Total installment loans

 

874,926

 

 

966,896

 

 

1,002,517

 

 

1,268,505

 

 

1,377,939

Total consumer loans

 

1,398,031

 

 

1,490,158

 

 

1,531,380

 

 

1,806,592

 

 

1,920,967

Total loans and leases held for investment

$

12,861,767

 

$

13,563,114

 

$

13,832,799

 

$

14,638,977

 

$

15,466,359

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Multifamily

$

—

 

$

—

 

$

—

 

$

4,051

 

$

4,079

Commercial real estate non-owner occupied

 

—

 

 

—

 

 

—

 

 

16,000

 

 

—

Total commercial loans and leases

 

—

 

 

—

 

 

—

 

 

20,051

 

 

4,079

Consumer:

 

 

 

 

 

 

 

 

 

Residential

 

1,215

 

 

1,005

 

 

1,234

 

 

821

 

 

829

Installment:

 

 

 

 

 

 

 

 

 

Personal

 

151,040

 

 

124,848

 

 

76,874

 

 

307,336

 

 

133,801

Other

 

188,062

 

 

24,515

 

 

—

 

 

95,849

 

 

189,603

Total installment loans

 

339,102

 

 

149,363

 

 

76,874

 

 

403,185

 

 

323,404

Total consumer loans

 

340,317

 

 

150,368

 

 

78,108

 

 

404,006

 

 

324,233

Total loans held for sale

$

340,317

 

$

150,368

 

$

78,108

 

$

424,057

 

$

328,312

 

 

 

 

 

 

 

 

 

 

Total loans and leases portfolio

$

13,202,084

 

$

13,713,482

 

$

13,910,907

 

$

15,063,034

 

$

15,794,671

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

PERIOD END DEPOSIT COMPOSITION - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

2023

 

2023

 

2023

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

Demand, non-interest bearing

$

4,422,494

 

$

4,758,682

 

$

4,490,198

 

$

3,487,517

 

$

1,885,045

Demand, interest bearing

 

5,580,527

 

 

5,824,410

 

 

5,551,037

 

 

5,791,302

 

 

8,476,027

Total demand deposits

 

10,003,021

 

 

10,583,092

 

 

10,041,235

 

 

9,278,819

 

 

10,361,072

Savings

 

1,402,941

 

 

1,118,353

 

 

1,048,229

 

 

924,359

 

 

811,798

Money market

 

3,226,395

 

 

2,499,593

 

 

2,004,264

 

 

2,019,633

 

 

2,734,217

Time deposits

 

3,287,879

 

 

3,994,326

 

 

4,856,703

 

 

5,500,806

 

 

4,249,866

Total deposits

$

17,920,236

 

$

18,195,364

 

$

17,950,431

 

$

17,723,617

 

$

18,156,953

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

 

ASSET QUALITY - UNAUDITED

 

(Dollars in thousands)

As of December 31, 2023

 

As of September 30, 2023

 

As of December 31, 2022

 

 

Total loans

 

Non accrual /NPLs

 

Allowance for credit losses

 

Total NPLs to total loans

 

Total reserves to total NPLs

 

Total loans

 

Non accrual /NPLs

 

Allowance for credit losses

 

Total NPLs to total loans

 

Total reserves to total NPLs

 

Total loans

 

Non accrual /NPLs

 

Allowance for credit losses

 

Total NPLs to total loans

 

Total reserves to total NPLs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial, including specialty lending (1)

$

6,211,105

 

$

4,436

 

$

23,503

 

0.07

%

 

529.82

%

 

$

6,617,508

 

$

5,767

 

$

24,986

 

0.09

%

 

433.26

%

 

$

6,672,830

 

$

1,761

 

$

17,582

 

0.03

%

 

998.41

%

 

Multifamily

 

2,138,622

 

 

—

 

 

16,343

 

—

%

 

—

%

 

 

2,130,213

 

 

—

 

 

15,870

 

—

%

 

—

%

 

 

2,213,019

 

 

1,143

 

 

14,541

 

0.05

%

 

1272.18

%

 

Commercial real estate owner occupied

 

797,319

 

 

5,869

 

 

9,882

 

0.74

%

 

168.38

%

 

 

794,815

 

 

7,442

 

 

10,363

 

0.94

%

 

139.25

%

 

 

885,339

 

 

2,768

 

 

6,454

 

0.31

%

 

233.16

%

 

Commercial real estate non-owner occupied

 

1,177,650

 

 

—

 

 

16,859

 

—

%

 

—

%

 

 

1,178,203

 

 

—

 

 

15,819

 

—

%

 

—

%

 

 

1,290,730

 

 

—

 

 

11,219

 

—

%

 

—

%

 

Construction

 

166,393

 

 

—

 

 

1,482

 

—

%

 

—

%

 

 

252,588

 

 

—

 

 

3,130

 

—

%

 

—

%

 

 

162,009

 

 

—

 

 

1,913

 

—

%

 

—

%

 

Total commercial loans and leases receivable

 

10,491,089

 

 

10,305

 

 

68,069

 

0.10

%

 

660.54

%

 

 

10,973,327

 

 

13,209

 

 

70,168

 

0.12

%

 

531.21

%

 

 

11,223,927

 

 

5,672

 

 

51,709

 

0.05

%

 

911.65

%

 

Residential

 

484,435

 

 

6,802

 

 

6,586

 

1.40

%

 

96.82

%

 

 

483,133

 

 

6,559

 

 

6,802

 

1.36

%

 

103.70

%

 

 

497,952

 

 

6,922

 

 

6,094

 

1.39

%

 

88.04

%

 

Manufactured housing

 

38,670

 

 

2,331

 

 

4,239

 

6.03

%

 

181.85

%

 

 

40,129

 

 

2,582

 

 

4,080

 

6.43

%

 

158.02

%

 

 

45,076

 

 

2,410

 

 

4,430

 

5.35

%

 

183.82

%

 

Installment

 

874,926

 

 

7,211

 

 

56,417

 

0.82

%

 

782.37

%

 

 

966,896

 

 

7,299

 

 

58,163

 

0.75

%

 

796.86

%

 

 

1,377,939

 

 

9,527

 

 

68,691

 

0.69

%

 

721.01

%

 

Total consumer loans receivable

 

1,398,031

 

 

16,344

 

 

67,242

 

1.17

%

 

411.42

%

 

 

1,490,158

 

 

16,440

 

 

69,045

 

1.10

%

 

419.98

%

 

 

1,920,967

 

 

18,859

 

 

79,215

 

0.98

%

 

420.04

%

 

Loans and leases receivable (1)

 

11,889,120

 

 

26,649

 

 

135,311

 

0.22

%

 

507.75

%

 

 

12,463,485

 

 

29,649

 

 

139,213

 

0.24

%

 

469.54

%

 

 

13,144,894

 

 

24,531

 

 

130,924

 

0.19

%

 

533.71

%

 

Loans receivable, PPP

 

74,735

 

 

—

 

 

—

 

—

%

 

—

%

 

 

137,063

 

 

—

 

 

—

 

—

%

 

—

%

 

 

998,153

 

 

—

 

 

—

 

—

%

 

—

%

 

Loans receivable, mortgage warehouse, at fair value

 

897,912

 

 

—

 

 

—

 

—

%

 

—

%

 

 

962,566

 

 

—

 

 

—

 

—

%

 

—

%

 

 

1,323,312

 

 

—

 

 

—

 

—

%

 

—

%

 

Total loans held for sale

 

340,317

 

 

461

 

 

—

 

0.14

%

 

—

%

 

 

150,368

 

 

218

 

 

—

 

0.14

%

 

—

%

 

 

328,312

 

 

6,206

 

 

—

 

1.89

%

 

—

%

 

Total portfolio

$

13,202,084

 

$

27,110

 

$

135,311

 

0.21

%

 

499.12

%

 

$

13,713,482

 

$

29,867

 

$

139,213

 

0.22

%

 

466.11

%

 

$

15,794,671

 

$

30,737

 

$

130,924

 

0.19

%

 

425.95

%

 

 

(1) Excluding loans receivable, PPP from total loans and leases receivable is a non-GAAP measure. Management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities. Please refer to the reconciliation schedules that follow this table.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4

 

Q3

 

Q2

 

Q1

 

Q4

 

Twelve Months Ended December 31,

 

 

2023

 

 

 

2023

 

 

2023 (1)

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Loan type

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial, including specialty lending

$

5,282

 

 

$

2,974

 

$

258

 

 

$

(71

)

 

$

12,960

 

 

$

8,443

 

 

$

15,066

 

Multifamily

 

127

 

 

 

1,999

 

 

1,448

 

 

 

—

 

 

 

—

 

 

 

3,574

 

 

 

1,653

 

Commercial real estate owner occupied

 

—

 

 

 

39

 

 

(34

)

 

 

—

 

 

 

(2

)

 

 

5

 

 

 

(51

)

Commercial real estate non-owner occupied

 

(288

)

 

 

—

 

 

266

 

 

 

4,234

 

 

 

972

 

 

 

4,212

 

 

 

5,954

 

Construction

 

—

 

 

 

—

 

 

—

 

 

 

(116

)

 

 

(10

)

 

 

(116

)

 

 

(236

)

Residential

 

(1

)

 

 

13

 

 

24

 

 

 

(2

)

 

 

7

 

 

 

34

 

 

 

(47

)

Installment

 

12,202

 

 

 

12,473

 

 

13,602

 

 

 

14,606

 

 

 

13,237

 

 

 

52,883

 

 

 

44,029

 

Total net charge-offs (recoveries) from loans held for investment

$

17,322

 

 

$

17,498

 

$

15,564

 

 

$

18,651

 

 

$

27,164

 

 

$

69,035

 

 

$

66,368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes $6.2 million of charge-offs for certain PCD loans acquired from the FDIC that were immediately applied against $8.7 million of allowance for credit losses on PCD loans recognized upon the acquisition of the loan portfolio on June 15, 2023. Subsequent recoveries and charge-offs of these PCD loans will be included in the period in which they occur.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED

We believe that the non-GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our core results of operations and financial condition relative to other financial institutions. These non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. These non-GAAP financial measures exclude from corresponding GAAP measures the impact of certain elements that we do not believe are representative of our ongoing financial results, which we believe enhance an overall understanding of our performance and increases comparability of our period to period results. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. The non-GAAP measures presented are not necessarily comparable to non-GAAP measures that may be presented by other financial institutions. Although non-GAAP financial measures are frequently used in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results of operations or financial condition as reported under GAAP.

The following tables present reconciliations of GAAP to non-GAAP measures disclosed within this document.

 

Core Earnings - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

December 31,

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

 

2023

 

2022

(Dollars in thousands, except per share data)

USD

Per share

 

USD

Per share

 

USD

Per share

 

USD

Per share

 

USD

Per share

 

USD

Per share

 

USD

Per share

GAAP net income to common shareholders

$

58,223

 

$

1.79

 

$

82,953

 

$

2.58

 

$

44,007

 

$

1.39

 

$

50,265

 

$

1.55

 

$

25,623

$

0.77

 

$

235,448

$

7.32

 

$

218,402

 

$

6.51

 

Reconciling items (after tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance expense

 

473

 

 

0.01

 

 

—

 

 

—

 

 

141

 

 

0.00

 

 

637

 

 

0.02

 

 

—

 

—

 

 

1,251

 

0.04

 

 

1,058

 

 

0.03

 

Impairments on fixed assets and leases

 

—

 

 

—

 

 

—

 

 

—

 

 

12

 

 

0.00

 

 

86

 

 

0.00

 

 

—

 

—

 

 

98

 

0.00

 

 

1,051

 

 

0.03

 

Loss on sale of consumer installment loans

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

—

 

 

—

 

—

 

 

18,221

 

 

0.54

 

Loss on sale of capital call lines of credit

 

—

 

 

—

 

 

—

 

 

—

 

 

3,914

 

 

0.12

 

 

—

 

 

—

 

 

—

 

—

 

 

3,914

 

0.12

 

 

—

 

 

—

 

(Gains) losses on investment securities

 

(85

)

 

0.00

 

 

492

 

 

0.02

 

 

49

 

 

0.00

 

 

(49

)

 

0.00

 

 

13,543

 

0.41

 

 

407

 

0.01

 

 

18,926

 

 

0.56

 

Derivative credit valuation adjustment

 

267

 

 

0.01

 

 

(151

)

 

0.00

 

 

(101

)

 

0.00

 

 

204

 

 

0.01

 

 

202

 

0.01

 

 

219

 

0.01

 

 

(1,243

)

 

(0.04

)

Tax on surrender of bank-owned life insurance policies

 

—

 

 

—

 

 

—

 

 

—

 

 

4,141

 

 

0.13

 

 

—

 

 

—

 

 

—

 

—

 

 

4,141

 

0.13

 

 

—

 

 

—

 

FDIC special assessment

 

2,755

 

 

0.08

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

—

 

 

2,755

 

0.09

 

 

—

 

 

—

 

Core earnings

$

61,633

 

$

1.90

 

$

83,294

 

$

2.59

 

$

52,163

 

$

1.65

 

$

51,143

 

$

1.58

 

$

39,368

$

1.19

 

$

248,233

$

7.72

 

$

256,415

 

$

7.63

 

 

Core Earnings, excluding PPP - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

December 31,

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

 

2023

 

2022

(Dollars in thousands, except per share data)

USD

Per share

 

USD

Per share

 

USD

Per share

 

USD

Per share

 

USD

Per share

 

USD

Per share

 

USD

Per share

GAAP net income to common shareholders

$

58,223

 

$

1.79

 

 

$

82,953

 

$

2.58

 

 

$

44,007

 

$

1.39

 

 

$

50,265

 

$

1.55

 

$

25,623

 

$

0.77

 

 

$

235,448

 

$

7.32

 

 

$

218,402

 

$

6.51

 

Less: PPP net income (loss) (after tax)

 

(5,264

)

 

(0.16

)

 

 

(11,168

)

 

(0.35

)

 

 

(2,068

)

 

(0.07

)

 

 

9,606

 

 

0.30

 

 

(5,956

)

 

(0.18

)

 

 

(8,894

)

 

(0.28

)

 

 

37,669

 

 

1.12

 

Net income to common shareholders, excluding PPP

 

63,487

 

 

1.95

 

 

 

94,121

 

 

2.93

 

 

 

46,075

 

 

1.46

 

 

 

40,659

 

 

1.26

 

 

31,579

 

 

0.95

 

 

 

244,342

 

 

7.60

 

 

 

180,733

 

 

5.39

 

Reconciling items (after tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance expense

 

473

 

 

0.01

 

 

 

—

 

 

—

 

 

 

141

 

 

0.00

 

 

 

637

 

 

0.02

 

 

—

 

 

—

 

 

 

1,251

 

 

0.04

 

 

 

1,058

 

 

0.03

 

Impairments on fixed assets and leases

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

12

 

 

0.00

 

 

 

86

 

 

0.00

 

 

—

 

 

—

 

 

 

98

 

 

0.00

 

 

 

1,051

 

 

0.03

 

Loss on sale of consumer installment loans

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

18,221

 

 

0.54

 

Loss on sale of capital call lines of credit

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

3,914

 

 

0.12

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

3,914

 

 

0.12

 

 

 

—

 

 

—

 

(Gains) losses on investment securities

 

(85

)

 

0.00

 

 

 

492

 

 

0.02

 

 

 

49

 

 

0.00

 

 

 

(49

)

 

0.00

 

 

13,543

 

 

0.41

 

 

 

407

 

 

0.01

 

 

 

18,926

 

 

0.56

 

Derivative credit valuation adjustment

 

267

 

 

0.01

 

 

 

(151

)

 

0.00

 

 

 

(101

)

 

0.00

 

 

 

204

 

 

0.01

 

 

202

 

 

0.01

 

 

 

219

 

 

0.01

 

 

 

(1,243

)

 

(0.04

)

Tax on surrender of bank-owned life insurance policies

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

4,141

 

 

0.13

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

4,141

 

 

0.13

 

 

 

—

 

 

—

 

FDIC special assessment

 

2,755

 

 

0.08

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

2,755

 

 

0.09

 

 

 

—

 

 

—

 

Core earnings, excluding PPP

$

66,897

 

$

2.06

 

 

$

94,462

 

$

2.94

 

 

$

54,231

 

$

1.72

 

 

$

41,537

 

$

1.28

 

$

45,324

 

$

1.37

 

 

$

257,127

 

$

7.99

 

 

$

218,746

 

$

6.51

 

Core Return on Average Assets - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

December 31,

(Dollars in thousands, except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

 

 

2023

 

 

 

2022

 

GAAP net income

$

62,092

 

 

$

86,756

 

 

$

47,574

 

 

$

53,721

 

 

$

28,711

 

 

$

250,143

 

 

$

228,034

 

Reconciling items (after tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance expense

 

473

 

 

 

—

 

 

 

141

 

 

 

637

 

 

 

—

 

 

 

1,251

 

 

 

1,058

 

Impairments on fixed assets and leases

 

—

 

 

 

—

 

 

 

12

 

 

 

86

 

 

 

—

 

 

 

98

 

 

 

1,051

 

Loss on sale of consumer installment loans

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,221

 

Loss on sale of capital call lines of credit

 

—

 

 

 

—

 

 

 

3,914

 

 

 

—

 

 

 

—

 

 

 

3,914

 

 

 

—

 

(Gains) losses on investment securities

 

(85

)

 

 

492

 

 

 

49

 

 

 

(49

)

 

 

13,543

 

 

 

407

 

 

 

18,926

 

Derivative credit valuation adjustment

 

267

 

 

 

(151

)

 

 

(101

)

 

 

204

 

 

 

202

 

 

 

219

 

 

 

(1,243

)

Tax on surrender of bank-owned life insurance policies

 

—

 

 

 

—

 

 

 

4,141

 

 

 

—

 

 

 

—

 

 

 

4,141

 

 

 

—

 

FDIC special assessment

 

2,755

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,755

 

 

 

—

 

Core net income

$

65,502

 

 

$

87,097

 

 

$

55,730

 

 

$

54,599

 

 

$

42,456

 

 

$

262,928

 

 

$

266,047

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

$

21,252,273

 

 

$

21,978,010

 

 

$

21,654,735

 

 

$

21,052,920

 

 

$

20,717,362

 

 

$

21,486,383

 

 

$

20,109,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core return on average assets

 

1.22

%

 

 

1.57

%

 

 

1.03

%

 

 

1.05

%

 

 

0.81

%

 

 

1.22

%

 

 

1.32

%

Core Return on Average Assets, excluding PPP - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

December 31,

(Dollars in thousands, except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

 

 

2023

 

 

 

2022

 

GAAP net income

$

62,092

 

 

$

86,756

 

 

$

47,574

 

 

$

53,721

 

 

$

28,711

 

 

$

250,143

 

 

$

228,034

 

Less: PPP net income (loss) (after tax)

 

(5,264

)

 

 

(11,168

)

 

 

(2,068

)

 

 

9,606

 

 

 

(5,956

)

 

 

(8,894

)

 

 

37,669

 

Net income, excluding PPP

 

67,356

 

 

 

97,924

 

 

 

49,642

 

 

 

44,115

 

 

 

34,667

 

 

 

259,037

 

 

 

190,365

 

Reconciling items (after tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance expense

 

473

 

 

 

—

 

 

 

141

 

 

 

637

 

 

 

—

 

 

 

1,251

 

 

 

1,058

 

Impairments on fixed assets and leases

 

—

 

 

 

—

 

 

 

12

 

 

 

86

 

 

 

—

 

 

 

98

 

 

 

1,051

 

Loss on sale of consumer installment loans

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,221

 

Loss on sale of capital call lines of credit

 

—

 

 

 

—

 

 

 

3,914

 

 

 

—

 

 

 

—

 

 

 

3,914

 

 

 

—

 

(Gains) losses on investment securities

 

(85

)

 

 

492

 

 

 

49

 

 

 

(49

)

 

 

13,543

 

 

 

407

 

 

 

18,926

 

Derivative credit valuation adjustment

 

267

 

 

 

(151

)

 

 

(101

)

 

 

204

 

 

 

202

 

 

 

219

 

 

 

(1,243

)

Tax on surrender of bank-owned life insurance policies

 

—

 

 

 

—

 

 

 

4,141

 

 

 

—

 

 

 

—

 

 

 

4,141

 

 

 

—

 

FDIC special assessment

 

2,755

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,755

 

 

 

—

 

Core net income, excluding PPP

$

70,766

 

 

$

98,265

 

 

$

57,798

 

 

$

44,993

 

 

$

48,412

 

 

$

271,822

 

 

$

228,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

$

21,252,273

 

 

$

21,978,010

 

 

$

21,654,735

 

 

$

21,052,920

 

 

$

20,717,362

 

 

$

21,486,383

 

 

$

20,109,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core return on average assets, excluding PPP

 

1.32

%

 

 

1.77

%

 

 

1.07

%

 

 

0.87

%

 

 

0.93

%

 

 

1.27

%

 

 

1.14

%

Adjusted Net Income and Adjusted ROAA - Pre-Tax Pre-Provision - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

December 31,

(Dollars in thousands, except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

 

 

2023

 

 

 

2022

 

GAAP net income

$

62,092

 

 

$

86,756

 

 

$

47,574

 

 

$

53,721

 

 

$

28,711

 

 

$

250,143

 

 

$

228,034

 

Reconciling items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

21,796

 

 

 

23,470

 

 

 

20,768

 

 

 

14,563

 

 

 

7,136

 

 

 

80,597

 

 

 

63,263

 

Provision (benefit) for credit losses

 

13,523

 

 

 

17,856

 

 

 

23,629

 

 

 

19,603

 

 

 

28,216

 

 

 

74,611

 

 

 

60,066

 

Provision (benefit) for credit losses on unfunded commitments

 

(136

)

 

 

48

 

 

 

(304

)

 

 

280

 

 

 

153

 

 

 

(112

)

 

 

906

 

Severance expense

 

639

 

 

 

—

 

 

 

182

 

 

 

809

 

 

 

—

 

 

 

1,630

 

 

 

1,363

 

Impairments on fixed assets and leases

 

—

 

 

 

—

 

 

 

15

 

 

 

109

 

 

 

—

 

 

 

124

 

 

 

1,362

 

Loss on sale of consumer installment loans

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23,465

 

Loss on sale of capital call lines of credit

 

—

 

 

 

—

 

 

 

5,037

 

 

 

—

 

 

 

—

 

 

 

5,037

 

 

 

—

 

(Gains) losses on investment securities

 

(114

)

 

 

626

 

 

 

62

 

 

 

(62

)

 

 

16,909

 

 

 

512

 

 

 

23,874

 

Derivative credit valuation adjustment

 

361

 

 

 

(192

)

 

 

(130

)

 

 

259

 

 

 

252

 

 

 

298

 

 

 

(1,621

)

FDIC special assessment

 

3,723

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,723

 

 

 

—

 

Adjusted net income - pre-tax pre-provision

$

101,884

 

 

$

128,564

 

 

$

96,833

 

 

$

89,282

 

 

$

81,377

 

 

$

416,563

 

 

$

400,712

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

$

21,252,273

 

 

$

21,978,010

 

 

$

21,654,735

 

 

$

21,052,920

 

 

$

20,717,362

 

 

$

21,486,383

 

 

$

20,109,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted ROAA - pre-tax pre-provision

 

1.90

%

 

 

2.32

%

 

 

1.79

%

 

 

1.72

%

 

 

1.56

%

 

 

1.94

%

 

1.99 

%

Adjusted Net Income and Adjusted ROAA - Pre-Tax Pre-Provision, excluding PPP - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

December 31,

(Dollars in thousands, except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

 

 

2023

 

 

 

2022

 

GAAP net income

$

62,092

 

 

$

86,756

 

 

$

47,574

 

 

$

53,721

 

 

$

28,711

 

 

$

250,143

 

 

$

228,034

 

Less: PPP net income (loss) (after tax)

 

(5,264

)

 

 

(11,168

)

 

 

(2,068

)

 

 

9,606

 

 

 

(5,956

)

 

 

(8,894

)

 

 

37,669

 

Net income, excluding PPP

 

67,356

 

 

 

97,924

 

 

 

49,642

 

 

 

44,115

 

 

 

34,667

 

 

 

259,037

 

 

 

190,365

 

Reconciling items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

21,796

 

 

 

23,470

 

 

 

20,768

 

 

 

14,563

 

 

 

7,136

 

 

 

80,597

 

 

 

63,263

 

Provision (benefit) for credit losses

 

13,523

 

 

 

17,856

 

 

 

23,629

 

 

 

19,603

 

 

 

28,216

 

 

 

74,611

 

 

 

60,066

 

Provision (benefit) for credit losses on unfunded commitments

 

(136

)

 

 

48

 

 

 

(304

)

 

 

280

 

 

 

153

 

 

 

(112

)

 

 

906

 

Severance expense

 

639

 

 

 

—

 

 

 

182

 

 

 

809

 

 

 

—

 

 

 

1,630

 

 

 

1,363

 

Impairments on fixed assets and leases

 

—

 

 

 

—

 

 

 

15

 

 

 

109

 

 

 

—

 

 

 

124

 

 

 

1,362

 

Loss on sale of consumer installment loans

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23,465

 

Loss on sale of capital call lines of credit

 

—

 

 

 

—

 

 

 

5,037

 

 

 

—

 

 

 

—

 

 

 

5,037

 

 

 

—

 

(Gains) losses on investment securities

 

(114

)

 

 

626

 

 

 

62

 

 

 

(62

)

 

 

16,909

 

 

 

512

 

 

 

23,874

 

Derivative credit valuation adjustment

 

361

 

 

 

(192

)

 

 

(130

)

 

 

259

 

 

 

252

 

 

 

298

 

 

 

(1,621

)

FDIC special assessment

 

3,723

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,723

 

 

 

—

 

Adjusted net income - pre-tax pre-provision, excluding PPP

$

107,148

 

 

$

139,732

 

 

$

98,901

 

 

$

79,676

 

 

$

87,333

 

 

$

425,457

 

 

$

363,043

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

$

21,252,273

 

 

$

21,978,010

 

 

$

21,654,735

 

 

$

21,052,920

 

 

$

20,717,362

 

 

$

21,486,383

 

 

$

20,109,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted ROAA - pre-tax pre-provision, excluding PPP

 

2.00

%

 

 

2.52

%

 

 

1.83

%

 

 

1.53

%

 

 

1.67

%

 

 

1.98

%

 

 

1.81

%

Core Return on Average Common Equity - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

December 31,

(Dollars in thousands, except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

 

 

2023

 

 

 

2022

 

GAAP net income to common shareholders

$

58,223

 

 

$

82,953

 

 

$

44,007

 

 

$

50,265

 

 

$

25,623

 

 

$

235,448

 

 

$

218,402

 

Reconciling items (after tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance expense

 

473

 

 

 

—

 

 

 

141

 

 

 

637

 

 

 

—

 

 

 

1,251

 

 

 

1,058

 

Impairments on fixed assets and leases

 

—

 

 

 

—

 

 

 

12

 

 

 

86

 

 

 

—

 

 

 

98

 

 

 

1,051

 

Loss on sale of consumer installment loans

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,221

 

Loss on sale of capital call lines of credit

 

—

 

 

 

—

 

 

 

3,914

 

 

 

—

 

 

 

—

 

 

 

3,914

 

 

 

—

 

(Gains) losses on investment securities

 

(85

)

 

 

492

 

 

 

49

 

 

 

(49

)

 

 

13,543

 

 

 

407

 

 

 

18,926

 

Derivative credit valuation adjustment

 

267

 

 

 

(151

)

 

 

(101

)

 

 

204

 

 

 

202

 

 

 

219

 

 

 

(1,243

)

Tax on surrender of bank-owned life insurance policies

 

—

 

 

 

—

 

 

 

4,141

 

 

 

—

 

 

 

—

 

 

 

4,141

 

 

 

—

 

FDIC special assessment

 

2,755

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,755

 

 

 

—

 

Core earnings

$

61,633

 

 

$

83,294

 

 

$

52,163

 

 

$

51,143

 

 

$

39,368

 

 

$

248,233

 

 

$

256,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total common shareholders’ equity

$

1,449,728

 

 

$

1,373,244

 

 

$

1,335,408

 

 

$

1,273,780

 

 

$

1,263,190

 

 

$

1,358,564

 

 

$

1,254,979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core return on average common equity

 

16.87

%

 

 

24.06

%

 

 

15.67

%

 

 

16.28

%

 

 

12.36

%

 

 

18.27

%

 

 

20.43

%

Adjusted ROCE - Pre-Tax Pre-Provision - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

December 31,

(Dollars in thousands, except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

 

 

2023

 

 

 

2022

 

GAAP net income to common shareholders

$

58,223

 

 

$

82,953

 

 

$

44,007

 

 

$

50,265

 

 

$

25,623

 

 

$

235,448

 

 

$

218,402

 

Reconciling items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

21,796

 

 

 

23,470

 

 

 

20,768

 

 

 

14,563

 

 

 

7,136

 

 

 

80,597

 

 

 

63,263

 

Provision (benefit) for credit losses

 

13,523

 

 

 

17,856

 

 

 

23,629

 

 

 

19,603

 

 

 

28,216

 

 

 

74,611

 

 

 

60,066

 

Provision (benefit) for credit losses on unfunded commitments

 

(136

)

 

 

48

 

 

 

(304

)

 

 

280

 

 

 

153

 

 

 

(112

)

 

 

906

 

Severance expense

 

639

 

 

 

—

 

 

 

182

 

 

 

809

 

 

 

—

 

 

 

1,630

 

 

 

1,363

 

Impairments on fixed assets and leases

 

—

 

 

 

—

 

 

 

15

 

 

 

109

 

 

 

—

 

 

 

124

 

 

 

1,362

 

Loss on sale of consumer installment loans

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23,465

 

Loss on sale of capital call lines of credit

 

—

 

 

 

—

 

 

 

5,037

 

 

 

—

 

 

 

—

 

 

 

5,037

 

 

 

—

 

(Gains) losses on investment securities

 

(114

)

 

 

626

 

 

 

62

 

 

 

(62

)

 

 

16,909

 

 

 

512

 

 

 

23,874

 

Derivative credit valuation adjustment

 

361

 

 

 

(192

)

 

 

(130

)

 

 

259

 

 

 

252

 

 

 

298

 

 

 

(1,621

)

FDIC special assessment

 

3,723

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,723

 

 

 

—

 

Pre-tax pre-provision adjusted net income available to common shareholders

$

98,015

 

 

$

124,761

 

 

$

93,266

 

 

$

85,826

 

 

$

78,289

 

 

$

401,868

 

 

$

391,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total common shareholders’ equity

$

1,449,728

 

 

$

1,373,244

 

 

$

1,335,408

 

 

$

1,273,780

 

 

$

1,263,190

 

 

$

1,358,564

 

 

$

1,254,979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted ROCE - pre-tax pre-provision

 

26.82

%

 

 

36.04

%

 

 

28.01

%

 

 

27.33

%

 

 

24.59

%

 

 

29.58

%

 

 

31.16

%

Net Interest Margin, Tax Equivalent, excluding PPP - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

December 31,

(Dollars in thousands, except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

 

 

2023

 

 

 

2022

 

GAAP net interest income

$

172,506

 

 

$

199,773

 

 

$

165,271

 

 

$

149,899

 

 

$

135,137

 

 

$

687,449

 

 

$

623,720

 

PPP net interest (income) expense

 

596

 

 

 

1,381

 

 

 

765

 

 

 

(14,106

)

 

 

2,791

 

 

 

(11,364

)

 

 

(60,402

)

Tax-equivalent adjustment

 

398

 

 

 

405

 

 

 

390

 

 

 

375

 

 

 

342

 

 

 

1,568

 

 

 

1,185

 

Net interest income, tax equivalent, excluding PPP

$

173,500

 

 

$

201,559

 

 

$

166,426

 

 

$

136,168

 

 

$

138,270

 

 

$

677,653

 

 

$

564,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP average total interest earning assets

$

20,802,304

 

 

$

21,485,319

 

 

$

21,073,680

 

 

$

20,514,677

 

 

$

20,211,028

 

 

$

20,971,198

 

 

$

19,588,374

 

Average PPP loans

 

(115,851

)

 

 

(166,164

)

 

 

(207,127

)

 

 

(889,235

)

 

 

(1,065,919

)

 

 

(341,987

)

 

 

(1,724,659

)

Adjusted average total interest earning assets, excluding PPP

$

20,686,453

 

 

$

21,319,155

 

 

$

20,866,553

 

 

$

19,625,442

 

 

$

19,145,109

 

 

$

20,629,211

 

 

$

17,863,715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin, tax equivalent, excluding PPP

 

3.33

%

 

 

3.75

%

 

 

3.20

%

 

 

2.80

%

 

 

2.87

%

 

 

3.28

%

 

 

3.16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Yield, excluding PPP

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

December 31,

(Dollars in thousands except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

 

 

2023

 

 

 

2022

 

Interest income on loans and leases

$

248,160

 

 

$

275,771

 

 

$

252,894

 

 

$

255,913

 

 

$

218,740

 

 

$

1,032,738

 

 

$

745,313

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PPP interest income

 

(839

)

 

 

(604

)

 

 

(1,633

)

 

 

(23,551

)

 

 

(7,249

)

 

 

(26,627

)

 

 

(79,381

)

Interest income on core loans (Loans and leases, excluding PPP)

$

247,321

 

 

$

275,167

 

 

$

251,261

 

 

$

232,362

 

 

$

211,491

 

 

$

1,006,111

 

 

$

665,932

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total loans and leases

$

13,486,453

 

 

$

13,899,034

 

 

$

14,842,432

 

 

$

15,477,973

 

 

$

15,388,003

 

 

$

14,419,572

 

 

$

14,911,165

 

Average PPP loans

 

(115,851

)

 

 

(166,164

)

 

 

(207,127

)

 

 

(889,235

)

 

 

(1,065,919

)

 

 

(341,987

)

 

 

(1,724,659

)

Adjusted average total loans and leases

$

13,370,602

 

 

$

13,732,870

 

 

$

14,635,305

 

 

$

14,588,738

 

 

$

14,322,084

 

 

$

14,077,585

 

 

$

13,186,506

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan yield, excluding PPP

 

7.34

%

 

 

7.95

%

 

 

6.89

%

 

 

6.46

%

 

 

5.86

%

 

 

7.15

%

 

 

5.05

%

Core Efficiency Ratio - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

December 31,

(Dollars in thousands, except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

 

 

2023

 

 

 

2022

 

GAAP net interest income

$

172,506

 

 

$

199,773

 

 

$

165,271

 

 

$

149,899

 

 

$

135,137

 

 

$

687,449

 

 

$

623,720

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP non-interest income

$

18,672

 

 

$

17,775

 

 

$

15,997

 

 

$

18,121

 

 

$

7,345

 

 

$

70,565

 

 

$

32,272

 

Loss on sale of consumer installment loans

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23,465

 

Loss on sale of capital call lines of credit

 

—

 

 

 

—

 

 

 

5,037

 

 

 

—

 

 

 

—

 

 

 

5,037

 

 

 

—

 

(Gains) losses on investment securities

 

(114

)

 

 

626

 

 

 

62

 

 

 

(62

)

 

 

16,909

 

 

 

512

 

 

 

23,874

 

Derivative credit valuation adjustment

 

361

 

 

 

(192

)

 

 

(130

)

 

 

259

 

 

 

252

 

 

 

298

 

 

 

(1,621

)

Core non-interest income

 

18,919

 

 

 

18,209

 

 

 

20,966

 

 

 

18,318

 

 

 

24,506

 

 

 

76,412

 

 

 

77,990

 

Core revenue

$

191,425

 

 

$

217,982

 

 

$

186,237

 

 

$

168,217

 

 

$

159,643

 

 

$

763,861

 

 

$

701,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP non-interest expense

$

93,767

 

 

$

89,466

 

 

$

89,297

 

 

$

80,133

 

 

$

78,419

 

 

$

352,663

 

 

$

304,629

 

Severance expense

 

(639

)

 

 

—

 

 

 

(182

)

 

 

(809

)

 

 

—

 

 

 

(1,630

)

 

 

(1,363

)

Impairments on fixed assets and leases

 

—

 

 

 

—

 

 

 

(15

)

 

 

(109

)

 

 

—

 

 

 

(124

)

 

 

(1,362

)

FDIC special assessment

 

(3,723

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,723

)

 

 

—

 

Core non-interest expense

$

89,405

 

 

$

89,466

 

 

$

89,100

 

 

$

79,215

 

 

$

78,419

 

 

$

347,186

 

 

$

301,904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core efficiency ratio (1)

 

46.70

%

 

 

41.04

%

 

 

47.84

%

 

 

47.09

%

 

 

49.12

%

 

 

45.45

%

 

 

43.02

%

 

(1) Core efficiency ratio calculated as core non-interest expense divided by core revenue.

Core non-interest expense to average total assets - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

December 31,

(Dollars in thousands, except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

 

 

2023

 

 

 

2022

 

GAAP non-interest expense

$

93,767

 

 

$

89,466

 

 

$

89,297

 

 

$

80,133

 

 

$

78,419

 

 

$

352,663

 

 

$

304,629

 

Severance expense

 

(639

)

 

 

—

 

 

 

(182

)

 

 

(809

)

 

 

—

 

 

 

(1,630

)

 

 

(1,363

)

Impairments on fixed assets and leases

 

—

 

 

 

—

 

 

 

(15

)

 

 

(109

)

 

 

—

 

 

 

(124

)

 

 

(1,362

)

FDIC special assessment

 

(3,723

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,723

)

 

 

—

 

Core non-interest expense

$

89,405

 

 

$

89,466

 

 

$

89,100

 

 

$

79,215

 

 

$

78,419

 

 

$

347,186

 

 

$

301,904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

$

21,252,273

 

 

$

21,978,010

 

 

$

21,654,735

 

 

$

21,052,920

 

 

$

20,717,362

 

 

$

21,486,383

 

 

$

20,109,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core non-interest expense to average total assets

 

1.67

%

 

 

1.62

%

 

 

1.65

%

 

 

1.53

%

 

 

1.50

%

 

 

1.62

%

 

 

1.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity to Tangible Assets - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

GAAP total shareholders’ equity

$

1,638,394

 

 

$

1,561,607

 

 

$

1,456,652

 

 

$

1,421,020

 

 

$

1,402,961

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Preferred stock

 

(137,794

)

 

 

(137,794

)

 

 

(137,794

)

 

 

(137,794

)

 

 

(137,794

)

Goodwill and other intangibles

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

Tangible common equity

$

1,496,971

 

 

$

1,420,184

 

 

$

1,315,229

 

 

$

1,279,597

 

 

$

1,261,538

 

 

 

 

 

 

 

 

 

 

 

GAAP total assets

$

21,316,265

 

 

$

21,857,152

 

 

$

22,028,565

 

 

$

21,751,614

 

 

$

20,896,112

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Goodwill and other intangibles

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

Tangible assets

$

21,312,636

 

 

$

21,853,523

 

 

$

22,024,936

 

 

$

21,747,985

 

 

$

20,892,483

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

7.0

%

 

 

6.5

%

 

 

6.0

%

 

 

5.9

%

 

 

6.0

%

Tangible Common Equity to Tangible Assets, excluding PPP - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

GAAP total shareholders’ equity

$

1,638,394

 

 

$

1,561,607

 

 

$

1,456,652

 

 

$

1,421,020

 

 

$

1,402,961

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Preferred stock

 

(137,794

)

 

 

(137,794

)

 

 

(137,794

)

 

 

(137,794

)

 

 

(137,794

)

Goodwill and other intangibles

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

Tangible common equity

$

1,496,971

 

 

$

1,420,184

 

 

$

1,315,229

 

 

$

1,279,597

 

 

$

1,261,538

 

 

 

 

 

 

 

 

 

 

 

GAAP total assets

$

21,316,265

 

 

$

21,857,152

 

 

$

22,028,565

 

 

$

21,751,614

 

 

$

20,896,112

 

Loans receivable, PPP

 

(74,735

)

 

 

(137,063

)

 

 

(188,763

)

 

 

(246,258

)

 

 

(998,153

)

Total assets, excluding PPP

$

21,241,530

 

 

$

21,720,089

 

 

$

21,839,802

 

 

$

21,505,356

 

 

$

19,897,959

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Goodwill and other intangibles

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

Tangible assets, excluding PPP

$

21,237,901

 

 

$

21,716,460

 

 

$

21,836,173

 

 

$

21,501,727

 

 

$

19,894,330

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets, excluding PPP

 

7.0

%

 

 

6.5

%

 

 

6.0

%

 

 

6.0

%

 

 

6.3

%

Tangible Book Value per Common Share - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except share and per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

GAAP total shareholders’ equity

$

1,638,394

 

 

$

1,561,607

 

 

$

1,456,652

 

 

$

1,421,020

 

 

$

1,402,961

 

Reconciling Items:

 

 

 

 

 

 

 

 

 

Preferred stock

 

(137,794

)

 

 

(137,794

)

 

 

(137,794

)

 

 

(137,794

)

 

 

(137,794

)

Goodwill and other intangibles

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

Tangible common equity

$

1,496,971

 

 

$

1,420,184

 

 

$

1,315,229

 

 

$

1,279,597

 

 

$

1,261,538

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

31,440,906

 

 

 

31,311,254

 

 

 

31,282,318

 

 

 

31,239,750

 

 

 

32,373,697

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per common share

$

47.61

 

 

$

45.36

 

 

$

42.04

 

 

$

40.96

 

 

$

38.97

 

 

 

 

 

 

 

 

 

 

 

Tangible Book Value per Common Share - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except share and per share data)

Q4 2023

 

Q4 2022

 

Q4 2021

 

Q4 2020

 

Q4 2019

 

Q4 2018

GAAP total shareholders’ equity

$

1,638,394

 

 

$

1,402,961

 

 

$

1,366,217

 

 

$

1,117,086

 

 

$

1,052,795

 

 

$

956,816

 

Reconciling Items:

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

(137,794

)

 

 

(137,794

)

 

 

(137,794

)

 

 

(217,471

)

 

 

(217,471

)

 

 

(217,471

)

Goodwill and other intangibles

 

(3,629

)

 

 

(3,629

)

 

 

(3,736

)

 

 

(14,298

)

 

 

(15,195

)

 

 

(16,499

)

Tangible common equity

$

1,496,971

 

 

$

1,261,538

 

 

$

1,224,687

 

 

$

885,317

 

 

$

820,129

 

 

$

722,846

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

31,440,906

 

 

 

32,373,697

 

 

 

32,913,267

 

 

 

31,705,088

 

 

 

31,336,791

 

 

 

31,003,028

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per common share

$

47.61

 

 

$

38.97

 

 

$

37.21

 

 

$

27.92

 

 

$

26.17

 

 

$

23.32

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Loans (Total Loans and Leases, excluding PPP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

Total loans and leases

$

13,202,084

 

 

$

13,713,482

 

 

$

13,910,907

 

 

$

15,063,034

 

 

$

15,794,671

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, PPP

 

(74,735

)

 

 

(137,063

)

 

 

(188,763

)

 

 

(246,258

)

 

 

(998,153

)

Core Loans (Total loans and leases, excluding PPP)

$

13,127,349

 

 

$

13,576,419

 

 

$

13,722,144

 

 

$

14,816,776

 

 

$

14,796,518

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Loans Held for Investment

(Total Loans and Leases Held for Investment, excluding PPP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

Total loans and leases, held for investment

$

12,861,767

 

 

$

13,563,114

 

 

$

13,832,799

 

 

$

14,638,977

 

 

$

15,466,359

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, PPP

 

(74,735

)

 

 

(137,063

)

 

 

(188,763

)

 

 

(246,258

)

 

 

(998,153

)

Core Loans Held for Investment

(Total loans and leases held for investment, excluding PPP)

$

12,787,032

 

 

$

13,426,051

 

 

$

13,644,036

 

 

$

14,392,719

 

 

$

14,468,206

 

 

 

 

 

 

 

 

 

 

 

Total Assets, excluding PPP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

Total assets

$

21,316,265

 

 

$

21,857,152

 

 

$

22,028,565

 

 

$

21,751,614

 

 

$

20,896,112

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, PPP

 

(74,735

)

 

 

(137,063

)

 

 

(188,763

)

 

 

(246,258

)

 

 

(998,153

)

Total assets, excluding PPP

$

21,241,530

 

 

$

21,720,089

 

 

$

21,839,802

 

 

$

21,505,356

 

 

$

19,897,959

 

 

 

 

 

 

 

 

 

 

 

Coverage of credit loss reserves for loans and leases held for investment, excluding PPP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Q4 2023

 

Q3 2023

 

Q2 2023

 

Q1 2023

 

Q4 2022

Loans and leases receivable

$

11,963,855

 

 

$

12,600,548

 

 

$

12,826,531

 

 

$

13,391,610

 

 

$

14,143,047

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, PPP

 

(74,735

)

 

 

(137,063

)

 

 

(188,763

)

 

 

(246,258

)

 

 

(998,153

)

Loans and leases held for investment, excluding PPP

$

11,889,120

 

 

$

12,463,485

 

 

$

12,637,768

 

 

$

13,145,352

 

 

$

13,144,894

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans and leases

$

135,311

 

 

$

139,213

 

 

$

139,656

 

 

$

130,281

 

 

$

130,924

 

 

 

 

 

 

 

 

 

 

 

Coverage of credit loss reserves for loans and leases held for investment, excluding PPP

 

1.14

%

 

 

1.12

%

 

 

1.11

%

 

 

0.99

%

 

 

1.00

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240124366139/en/

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