CUBI Customers Bancorp Inc.

Customers Bancorp Reports Results for Full Year and Fourth Quarter 2022

Customers Bancorp, Inc. (NYSE:CUBI)

Full Year 2022 Highlights

  • 2022 net income available to common shareholders was $218.4 million, or $6.51 per diluted share; ROAA was 1.13% and ROCE was 17.40%.
  • 2022 core earnings* were $256.4 million, or $7.63 per diluted share; Core ROAA* was 1.32% and Core ROCE* was 20.43%.
  • 2022 core earnings excluding Paycheck Protection Program* ("PPP") were $218.7 million, or $6.51 per diluted share, up 46.2% over 2021. This included a pre-tax provision release of $36.8 million, or $0.86 per diluted share, from the sale of $500.0 million of consumer installment loans in Q3 2022, and other full year 2022 core earnings (excluding PPP)* of $5.65.
  • 2022 adjusted pre-tax pre-provision net income* was $400.7 million; adjusted pre-tax pre-provision ROAA* was 1.99%; adjusted pre-tax pre-provision ROCE* was 31.16%.
  • Year-over-year loan growth was $1.2 billion, or 8.4%. Year-over-year loan growth excluding PPP* was $3.5 billion, or 30.7%, led by our low-risk variable rate corporate and specialty lending verticals.
  • Year-over-year deposit growth was $1.4 billion, up 8.2%.
  • 2022 net interest margin, tax equivalent was 3.19%. 2022 net interest margin, tax equivalent, excluding the impact of PPP loans* was 3.16%.
  • 2022 provision for credit losses on loans and leases of $59.5 million was largely driven by the impact of loan growth, net of the sale of consumer installment loans in Q3 2022, the recognition of weaker macroeconomic forecasts, and certain one-time charge-offs.
  • Non-performing assets were $30.8 million, or 0.15% of total assets, at December 31, 2022 compared to $49.8 million, or 0.25% of total assets, at December 31, 2021. Allowance for credit losses on loans and leases equaled 426% of non-performing loans at December 31, 2022, compared to 278% at December 31, 2021.
  • Book value per share and tangible book value per share* grew year over year by $1.76 or 4.7%, despite increased AOCI losses of $158.1 million over the same time period. Tangible book value per share* has grown by 77.9% over the past 5 years, significantly higher than the industry average of 2% for mid-cap banks (1).
  • Repurchased 830,145 common shares for $33.2 million in 2022, leaving 1.9 million of common shares authorized to be repurchased by September 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 are included at the end of this document.

(1) Mid-cap banks as reported by KRX Index.

Fourth Quarter 2022 Highlights

  • Q4 2022 net income available to common shareholders was $25.6 million, or $0.77 per diluted share; ROAA was 0.55% and ROCE was 8.05%.
  • Q4 2022 core earnings* were $39.4 million, or $1.19 per diluted share; Core ROAA* was 0.81% and Core ROCE* was 12.36%.
  • Q4 2022 core earnings (excluding PPP)* were $45.3 million, or $1.37 per diluted share, up 22.9% over Q4 2021.
  • Q4 2022 adjusted pre-tax pre-provision net income* was $81.4 million; adjusted pre-tax pre-provision ROAA* was 1.56%; adjusted pre-tax pre-provision ROCE* was 24.59%.
  • Q4 2022 loan growth was $458.0 million, or 3.0%. Q4 2022 loan growth excluding PPP* was $614.5 million, or 4.3%, led by our low-risk variable rate corporate and specialty lending verticals.
  • Q4 2022 deposit growth was $634.5 million, or 3.6%.
  • Q4 2022 net interest margin, tax equivalent was 2.67%. Q4 2022 net interest margin, tax equivalent, excluding the impact of PPP loans* was 2.87%.
  • Q4 2022 provision for credit losses on loans and leases of $27.9 million was largely driven by the impact of loan growth, the recognition of weaker macroeconomic forecasts, and one-time charge-offs of $11.0 million for loans originated pursuant to the PPP program.
  • Non-performing assets were $30.8 million, or 0.15% of total assets, at December 31, 2022 compared to $28.0 million, or 0.14% of total assets, at September 30, 2022. Allowance for credit losses on loans and leases equaled 426% of non-performing loans at December 31, 2022, compared to 466% at September 30, 2022.
  • Q4 2022 book value per share and tangible book value per share* grew by $0.62 or 1.6%, despite increased AOCI losses of $7.0 million over the same time period.
  • Repurchased 166,000 common shares for $5.3 million in Q4 2022.

CEO Commentary

“We delivered another solid quarter and are extremely pleased with our 2022 results despite the challenging interest rate and economic environment,” said Customers Bancorp Chairman and CEO, Jay Sidhu. “Our Q4 2022 GAAP earnings were negatively impacted by after-tax securities net losses of $13.5 million, or $0.41 per diluted share, which will benefit net interest margin in the short-term and has an earn back of roughly one year as well as after-tax net losses on PPP loans of $6.0 million, or $0.18 per diluted share. However, we are very pleased to report that Q4 2022 earnings from the core bank* were $1.37 per diluted share, beating internal targets and estimates, and bringing full year 2022 core earnings (excluding PPP)* per share to $6.51. Our responsible organic growth strategy is laser focused on credit quality with 90% of our growth in low credit risk verticals. We have taken prudent risk management strategic actions over the past several quarters to ensure we are well positioned from a capital, credit, liquidity and earnings perspective especially as we head into a highly uncertain 2023. We are also pleased to report that we beat the upper end of our 2022 core earnings per share, excluding PPP* target of $4.75 - $5.00 by 13%, even before considering the Q3 2022 pre-tax provision release of $36.8 million. Core loan* growth in 2022 was led by increases in low-risk variable rate specialty lending verticals of $3.0 billion. Asset quality remains exceptional and credit reserves are extremely robust at 426% of total non-performing loans. Our loan and deposit pipelines remain strong and we are very focused on improving our margins, moderating our growth, controlling our expenses, actively buying back common shares to the extent we are trading below book value, and creating exceptional value for our shareholders. We remain very optimistic about our future,” Mr. Jay Sidhu continued.

Core earnings excluding PPP* for Q4 2022 were $45.3 million, or $1.37 per diluted share, calculated as shown below.

(Dollars in thousands, except per share data)

USD

 

Per share

GAAP net income available to shareholders

$

25,623

 

 

$

0.77

 

Less: PPP net loss, after-tax

 

(5,956

)

 

 

(0.18

)

GAAP net income to common shareholders, excluding PPP

 

31,579

 

 

 

0.95

 

Losses on investment securities

 

13,543

 

 

 

0.41

 

Derivative credit valuation adjustment

 

202

 

 

 

0.01

 

Core earnings, excluding PPP

$

45,324

 

 

$

1.37

 

 

 

 

 

 

Financial Highlights

(Dollars in thousands, except per share data)

 

At or Three Months Ended

 

Increase (Decrease)

 

Twelve Months Ended

 

Increase (Decrease)

 

December 31,

2022

 

December 31,

2021

 

 

December 31,

2022

 

December 31,

2021

 

Profitability Metrics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available for common shareholders

 

$

25,623

 

 

$

98,647

 

 

$

(73,024

)

 

(74.0

) %

 

$

218,402

 

 

$

300,134

 

 

$

(81,732

)

 

(27.2

) %

Diluted earnings per share

 

$

0.77

 

 

$

2.87

 

 

$

(2.10

)

 

(73.2

) %

 

$

6.51

 

 

$

8.91

 

 

$

(2.40

)

 

(26.9

) %

Core earnings*

 

$

39,368

 

 

$

101,213

 

 

$

(61,845

)

 

(61.1

) %

 

$

256,415

 

 

$

344,700

 

 

$

(88,285

)

 

(25.6

) %

Core earnings per share*

 

$

1.19

 

 

$

2.95

 

 

$

(1.76

)

 

(59.7

) %

 

$

7.63

 

 

$

10.23

 

 

$

(2.60

)

 

(25.4

) %

Core earnings, excluding PPP*

 

$

45,324

 

 

$

36,890

 

 

$

8,434

 

 

22.9

%

 

$

218,746

 

 

$

149,650

 

 

$

69,096

 

 

46.2

%

Core earnings per share, excluding PPP*

 

$

1.37

 

 

$

1.07

 

 

$

0.30

 

 

28.0

%

 

$

6.51

 

 

$

4.44

 

 

$

2.07

 

 

46.6

%

Return on average assets ("ROAA")

 

 

0.55

%

 

 

2.08

%

 

 

(1.53

)

 

 

 

 

1.13

%

 

 

1.64

%

 

 

(0.51

)

 

 

Core ROAA*

 

 

0.81

%

 

 

2.13

%

 

 

(1.32

)

 

 

 

 

1.32

%

 

 

1.86

%

 

 

(0.54

)

 

 

Core ROAA, excluding PPP*

 

 

0.93

%

 

 

0.80

%

 

 

0.13

 

 

 

 

 

1.14

%

 

 

0.84

%

 

 

0.30

 

 

 

Return on average common equity ("ROCE")

 

 

8.05

%

 

 

33.18

%

 

 

(25.13

)

 

 

 

 

17.40

%

 

 

28.75

%

 

 

(11.35

)

 

 

Core ROCE*

 

 

12.36

%

 

 

34.04

%

 

 

(21.68

)

 

 

 

 

20.43

%

 

 

33.02

%

 

 

(12.59

)

 

 

Adjusted pre-tax pre-provision net income*

 

$

81,377

 

 

$

130,595

 

 

$

(49,218

)

 

(37.7

) %

 

$

400,712

 

 

$

471,046

 

 

$

(70,334

)

 

(14.9

) %

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

 

 

1.67

%

 

 

1.37

%

 

 

0.30

 

 

 

 

 

1.81

%

 

 

1.44

%

 

 

0.37

 

 

 

Net interest margin, tax equivalent

 

 

2.67

%

 

 

4.14

%

 

 

(1.47

)

 

 

 

 

3.19

%

 

 

3.70

%

 

 

(0.51

)

 

 

Net interest margin, tax equivalent, excluding PPP loans*

 

 

2.87

%

 

 

3.12

%

 

 

(0.25

)

 

 

 

 

3.16

%

 

 

3.16

%

 

 

 

 

 

Loan yield

 

 

5.64

%

 

 

5.48

%

 

 

0.16

 

 

 

 

 

5.00

%

 

 

4.73

%

 

 

0.27

 

 

 

Loan yield, excluding PPP*

 

 

5.86

%

 

 

4.41

%

 

 

1.45

 

 

 

 

 

5.05

%

 

 

4.37

%

 

 

0.68

 

 

 

Cost of deposits

 

 

2.73

%

 

 

0.36

%

 

 

2.37

 

 

 

 

 

1.31

%

 

 

0.44

%

 

 

0.87

 

 

 

Efficiency ratio

 

 

49.20

%

 

 

38.70

%

 

 

10.50

 

 

 

 

 

44.81

%

 

 

40.38

%

 

 

4.43

 

 

 

Core efficiency ratio*

 

 

49.12

%

 

 

38.14

%

 

 

10.98

 

 

 

 

 

43.02

%

 

 

37.54

%

 

 

5.48

 

 

 

Balance Sheet Trends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

20,896,112

 

 

$

19,575,028

 

 

$

1,321,084

 

 

6.7

%

 

 

 

 

 

 

 

 

Total assets, excluding PPP*

 

$

19,897,959

 

 

$

16,325,020

 

 

$

3,572,939

 

 

21.9

%

 

 

 

 

 

 

 

 

Total loans and leases

 

$

15,794,671

 

 

$

14,568,885

 

 

$

1,225,786

 

 

8.4

%

 

 

 

 

 

 

 

 

Total loans and leases, excluding PPP*

 

$

14,796,518

 

 

$

11,318,877

 

 

$

3,477,641

 

 

30.7

%

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

$

1,885,045

 

 

$

4,459,790

 

 

$

(2,574,745

)

 

(57.7

) %

 

 

 

 

 

 

 

 

Total deposits

 

$

18,156,953

 

 

$

16,777,924

 

 

$

1,379,029

 

 

8.2

%

 

 

 

 

 

 

 

 

Capital Metrics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity

 

$

1,265,167

 

 

$

1,228,423

 

 

$

36,744

 

 

3.0

%

 

 

 

 

 

 

 

 

Tangible Common Equity*

 

$

1,261,538

 

 

$

1,224,687

 

 

$

36,851

 

 

3.0

%

 

 

 

 

 

 

 

 

Common Equity to Total Assets

 

 

6.05

%

 

 

6.28

%

 

 

(0.23

)

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity to Tangible Assets*

 

 

6.04

%

 

 

6.26

%

 

 

(0.22

)

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity to Tangible Assets, excluding PPP*

 

 

6.34

%

 

 

7.50

%

 

 

(1.16

)

 

 

 

 

 

 

 

 

 

 

Book Value per common share

 

$

39.08

 

 

$

37.32

 

 

$

1.76

 

 

4.7

%

 

 

 

 

 

 

 

 

Tangible Book Value per common share*

 

$

38.97

 

 

$

37.21

 

 

$

1.76

 

 

4.7

%

 

 

 

 

 

 

 

 

Common equity Tier 1 capital ratio (1)

 

 

9.5

%

 

 

10.0

%

 

 

(0.5

)

 

 

 

 

 

 

 

 

 

 

Total risk based capital ratio (1)

 

 

12.0

%

 

 

12.9

%

 

 

(0.9

)

 

 

 

 

 

 

 

 

 

 

(1)

Regulatory capital ratios as of December 31, 2022 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.

 

Paycheck Protection Program (PPP)

We funded, either directly or indirectly, about 358,000 loans totaling $10.3 billion. Through the program, we earned close to $350 million of deferred origination fees from the SBA, which was significantly accretive to our earnings and capital levels as these loans were forgiven by the government. In Q4 2022, we recognized only $4 million of these fees in earnings as forgiveness levels were slower than expected, bringing total fees recognized to date to $322 million, and $26 million remaining to be recognized in 2023. "As we've stated previously, it is difficult to predict the timing of PPP forgiveness. We expect most of the fees to be recognized over the next two quarters; however, because we fully paid off the FRB PPP liquidity facility in third quarter 2021, these loans are currently being funded with higher cost funding, reducing their short-term profitability. This was particularly evident in Q4 2022 as higher PPP-related expenses resulted in a total negative impact to Q4 2022 earnings of $0.18 per diluted share. This included negative net interest income of $2.8 million resulting from higher funding costs, $11.0 million of one-time charge-offs increasing provision expense, and a $7.5 million gain resulting from a legal settlement with one of our third party PPP service providers. These one-time charge-offs are before the impact of any contractual indemnities or recoveries we may receive in future periods," commented Customers Bancorp CFO, Carla Leibold.

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,

2022

 

% of

Total

 

September 30,

2022

 

% of

Total

 

December 31,

2021

 

% of

Total

Commercial:

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial:

 

 

 

 

 

 

 

 

 

 

 

Specialty lending

$

5,412,887

 

34.3

%

 

$

5,103,974

 

33.3

%

 

$

2,403,991

 

16.5

%

Other commercial & industrial

 

1,135,336

 

7.2

 

 

 

1,064,332

 

7.0

 

 

 

942,679

 

6.5

 

Multifamily

 

2,217,098

 

14.0

 

 

 

2,267,376

 

14.8

 

 

 

1,486,308

 

10.2

 

Loans to mortgage companies

 

1,447,919

 

9.2

 

 

 

1,708,587

 

11.1

 

 

 

2,362,438

 

16.2

 

Commercial real estate owner occupied

 

885,339

 

5.6

 

 

 

726,670

 

4.7

 

 

 

654,922

 

4.5

 

Loans receivable, PPP

 

998,153

 

6.3

 

 

 

1,154,632

 

7.5

 

 

 

3,250,008

 

22.3

 

Commercial real estate non-owner occupied

 

1,290,730

 

8.2

 

 

 

1,263,211

 

8.2

 

 

 

1,121,238

 

7.7

 

Construction

 

162,009

 

1.0

 

 

 

136,133

 

0.9

 

 

 

198,981

 

1.4

 

Total commercial loans and leases

 

13,549,471

 

85.8

 

 

 

13,424,915

 

87.5

 

 

 

12,420,565

 

85.3

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

Residential

 

498,781

 

3.1

 

 

 

466,888

 

3.0

 

 

 

350,984

 

2.4

 

Manufactured housing

 

45,076

 

0.3

 

 

 

46,990

 

0.3

 

 

 

52,861

 

0.3

 

Installment:

 

 

 

 

 

 

 

 

 

 

 

Personal

 

1,306,376

 

8.3

 

 

 

1,056,432

 

6.9

 

 

 

1,392,862

 

9.6

 

Other

 

394,967

 

2.5

 

 

 

341,463

 

2.3

 

 

 

351,613

 

2.4

 

Total consumer loans

 

2,245,200

 

14.2

 

 

 

1,911,773

 

12.5

 

 

 

2,148,320

 

14.7

 

Total loans and leases

$

15,794,671

 

100.0

%

 

$

15,336,688

 

100.0

%

 

$

14,568,885

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial ("C&I") loans and leases, including specialty lending, increased $3.2 billion, or 95.7% year-over-year, to $6.5 billion. Practically all of the increases in outstanding balances were in the low-risk variable rate secured categories of Capital Call Lines and Lender Finance (collectively referred to as Fund Finance). Multifamily loans increased $730.8 million, or 49.2%, to $2.2 billion, commercial real estate owner occupied loans increased $230.4 million, or 35.2%, to $885.3 million, commercial real estate non-owner occupied loans increased $169.5 million, or 15.1% to $1.3 billion and residential loans increased $147.8 million, or 42.1%, to $498.8 million year-over-year. These increases in loans and leases were partially offset by a decrease in total consumer installment loans of $43.1 million, or 2.5%, to $1.7 billion primarily due to the sale of $500.0 million of consumer installment loans in Q3 2022 offsetting new originations and originations and purchases of certain consumer installment loans with the intent to sell and a decrease in construction loans of $37.0 million, or 18.6%, to $162.0 million.

Allowance for Credit Losses on Loans and Leases

The following table presents allowance for credit losses on loans and leases (information as of the dates and periods indicated):

 

At or Three Months Ended

 

Increase

(Decrease)

 

At or Three Months Ended

 

Increase

(Decrease)

(Dollars in thousands)

December 31,

2022

 

September 30,

2022

 

 

December 31,

2022

 

December 31,

2021

 

Allowance for credit losses on loans and leases

$

130,924

 

 

$

130,197

 

 

$

727

 

$

130,924

 

 

$

137,804

 

 

$

(6,880

)

Provision (benefit) for credit losses on loans and leases

$

27,891

 

 

$

(7,836

)

 

$

35,727

 

$

27,891

 

 

$

13,890

 

 

$

14,001

 

Net charge-offs (recoveries) from loans held for investment

$

27,164

 

 

$

18,497

 

 

$

8,667

 

$

27,164

 

 

$

7,582

 

 

$

19,582

 

Annualized net charge-offs (recoveries) to average loans and leases

 

0.70

%

 

 

0.47

%

 

 

 

 

0.70

%

 

 

0.21

%

 

 

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

 

0.93

%

 

 

0.95

%

 

 

 

 

0.93

%

 

 

1.12

%

 

 

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

 

1.00

%

 

 

1.03

%

 

 

 

 

1.00

%

 

 

1.53

%

 

 

*

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

 

The increase in net charge-offs in Q4 2022 compared to Q3 2022 was primarily due to one-time charge-offs of $11.0 million for certain loans originated under the PPP program that were subsequently determined to be ineligible for SBA forgiveness and guarantee and were deemed uncollectible.

Provision (Benefit) for Credit Losses

 

 

Three Months Ended

 

Increase

(Decrease)

 

Three Months Ended

 

Increase

(Decrease)

(Dollars in thousands)

 

December 31,

2022

 

September 30,

2022

 

 

December 31,

2022

 

December 31,

2021

 

Provision (benefit) for credit losses on loans and leases

 

$

27,891

 

$

(7,836

)

 

$

35,727

 

 

$

27,891

 

$

13,890

 

$

14,001

 

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

 

 

325

 

 

(158

)

 

 

483

 

 

 

325

 

 

 

 

325

 

Provision (benefit) for credit losses

 

 

28,216

 

 

(7,994

)

 

 

36,210

 

 

 

28,216

 

 

13,890

 

 

14,326

 

Provision (benefit) for credit losses on unfunded commitments

 

 

153

 

 

254

 

 

 

(101

)

 

 

153

 

 

352

 

 

(199

)

Total provision (benefit) for credit losses

 

$

28,369

 

$

(7,740

)

 

$

36,109

 

 

$

28,369

 

$

14,242

 

$

14,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The provision for credit losses on loans and leases in Q4 2022 was $27.9 million, compared to a benefit to provision of $7.8 million in Q3 2022. The provision in Q4 2022 was primarily due to loan growth, one-time charge-offs of $11.0 million for certain loans originated under the PPP program that were subsequently determined to be ineligible for SBA forgiveness and guarantee and ultimately deemed uncollectible and our recognition of weaker macroeconomic forecasts, as compared to a benefit to provision in Q3 2022 primarily from the sale of $500.0 million of consumer installment loans in connection with the Company's balance sheet optimization initiatives. The sale transaction resulted in approximately $36.8 million of release in allowance for credit losses in Q3 2022, which was included in core earnings* and contributed approximately $0.86 per diluted share. The provision for credit losses on available for sale investment securities in Q4 2022 was $0.3 million compared to a benefit to provision of $0.2 million in Q3 2022.

The provision for credit losses on loans and leases in Q4 2022 was $27.9 million, compared to a provision of $13.9 million in Q4 2021. The provision in Q4 2022 was primarily due to loan growth, one-time charge-offs of $11.0 million for certain loans originated under the PPP program that were subsequently determined to be ineligible for SBA forgiveness and guarantee and ultimately deemed uncollectible and our recognition of weaker macroeconomic forecasts. The provision for credit losses on available for sale investment securities in Q4 2022 was $0.3 million compared to no provision in Q4 2021.

Asset Quality

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

(Dollars in thousands)

December 31,

2022

 

September 30,

2022

 

Increase

(Decrease)

 

December 31,

2022

 

December 31,

2021

 

Increase

(Decrease)

Non-performing assets ("NPAs"):

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual / non-performing loans ("NPLs")

$

30,737

 

 

$

27,919

 

 

$

2,818

 

 

$

30,737

 

 

$

49,620

 

 

$

(18,883

)

Non-performing assets

$

30,783

 

 

$

27,965

 

 

$

2,818

 

 

$

30,783

 

 

$

49,760

 

 

$

(18,977

)

NPLs to total loans and leases

 

0.19

%

 

 

0.18

%

 

 

 

 

0.19

%

 

 

0.34

%

 

 

Reserves to NPLs

 

425.95

%

 

 

466.34

%

 

 

 

 

425.95

%

 

 

277.72

%

 

 

NPAs to total assets

 

0.15

%

 

 

0.14

%

 

 

 

 

0.15

%

 

 

0.25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases risk ratings:

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases (1)

 

 

 

 

 

 

 

 

 

 

 

Pass

$

10,793,980

 

 

$

10,262,647

 

 

$

531,333

 

 

$

10,793,980

 

 

$

6,389,228

 

 

$

4,404,752

 

Special Mention

 

138,829

 

 

 

104,560

 

 

 

34,269

 

 

 

138,829

 

 

 

230,065

 

 

 

(91,236

)

Substandard

 

291,118

 

 

 

329,878

 

 

 

(38,760

)

 

 

291,118

 

 

 

266,939

 

 

 

24,179

 

Total commercial loans and leases

 

11,223,927

 

 

 

10,697,085

 

 

 

526,842

 

 

 

11,223,927

 

 

 

6,886,232

 

 

 

4,337,695

 

Consumer loans

 

 

 

 

 

 

 

 

 

 

 

Performing

 

1,899,376

 

 

 

1,893,977

 

 

 

5,399

 

 

 

1,899,376

 

 

 

2,114,950

 

 

 

(215,574

)

Non-performing

 

21,591

 

 

 

16,680

 

 

 

4,911

 

 

 

21,591

 

 

 

17,116

 

 

 

4,475

 

Total consumer loans

 

1,920,967

 

 

 

1,910,657

 

 

 

10,310

 

 

 

1,920,967

 

 

 

2,132,066

 

 

 

(211,099

)

Loans and leases receivable

$

13,144,894

 

 

$

12,607,742

 

 

$

537,152

 

 

$

13,144,894

 

 

$

9,018,298

 

 

$

4,126,596

 

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

Over the last decade, we have developed a suite of commercial loan products with one particularly important common denominator: relatively low credit risk assumption. The Bank’s C&I, loans to mortgage companies, corporate and specialty lending lines of business, and multifamily loans for example, are characterized by conservative underwriting standards and low loss rates. Because of this emphasis, the Bank’s credit quality to date has been incredibly healthy despite an adverse economic environment. Maintaining strong asset quality also requires a highly active portfolio monitoring process. In addition to frequent client outreach and monitoring at the individual loan level, we employ a bottom-up data driven approach to analyze the commercial portfolio. Exposure to industry segments and CRE significantly impacted by COVID-19 initially is not substantial.

Total consumer installment loans were approximately 8.1% of total assets at December 31, 2022, 10.8% of total loans and leases and 11.5% of core loans*, and were supported by an allowance for credit losses of $68.7 million. At December 31, 2022, our consumer installment portfolio had the following characteristics: average original FICO score of 740, average debt-to-income of 19.0% and average borrower income of $107 thousand.

Non-performing loans at December 31, 2022 were essentially flat at 0.19% of total loans and leases, compared to 0.18% at September 30, 2022 and 0.34% at December 31, 2021.

Deposits

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

(Dollars in thousands)

December 31,

2022

 

% of

Total

 

September 30,

2022

 

% of

Total

 

December 31,

2021

 

% of

Total

Demand, non-interest bearing

$

1,885,045

 

10.4

%

 

$

2,993,793

 

17.1

%

 

$

4,459,790

 

26.6

%

Demand, interest bearing

 

8,476,027

 

46.7

 

 

 

7,124,663

 

40.7

 

 

 

6,488,406

 

38.7

 

Total demand deposits

 

10,361,072

 

57.1

 

 

 

10,118,456

 

57.8

 

 

 

10,948,196

 

65.3

 

Savings

 

811,798

 

4.5

 

 

 

592,002

 

3.4

 

 

 

973,317

 

5.8

 

Money market

 

2,734,217

 

15.1

 

 

 

4,913,967

 

28.0

 

 

 

4,349,073

 

25.9

 

Time deposits

 

4,249,866

 

23.3

 

 

 

1,898,013

 

10.8

 

 

 

507,338

 

3.0

 

Total deposits

$

18,156,953

 

100.0

%

 

$

17,522,438

 

100.0

%

 

$

16,777,924

 

100.0

%

Total deposits increased $1.4 billion, or 8.2%, to $18.2 billion at December 31, 2022 as compared to a year ago. Time deposits increased $3.7 billion, or 737.7%, to $4.2 billion. This increase was offset partially by decreases in money market deposits of $1.6 billion, or 37.1%, to $2.7 billion, total demand deposits of $587.1 million, or 5.4%, to $10.4 billion and savings deposits of $161.5 million, or 16.6%, to $811.8 million. The total cost of deposits increased by 237 basis points to 2.73% in Q4 2022 from 0.36% in the prior year primarily due to higher market interest rates and a shift in deposit mix.

Capital

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

(Dollars in thousands except per share data)

December 31,

2022

 

September 30,

2022

 

December 31,

2021

Customers Bancorp, Inc.

 

 

 

 

 

Common Equity

$

1,265,167

 

 

$

1,249,137

 

 

$

1,228,423

 

Tangible Common Equity*

$

1,261,538

 

 

$

1,245,508

 

 

$

1,224,687

 

Common Equity to Total Assets

 

6.05

%

 

 

6.13

%

 

 

6.28

%

Tangible Common Equity to Tangible Assets*

 

6.04

%

 

 

6.12

%

 

 

6.26

%

Tangible Common Equity to Tangible Assets, excluding PPP*

 

6.34

%

 

 

6.48

%

 

 

7.50

%

Book Value per common share

$

39.08

 

 

$

38.46

 

 

$

37.32

 

Tangible Book Value per common share*

$

38.97

 

 

$

38.35

 

 

$

37.21

 

Common equity Tier 1 capital ratio (1)

 

9.5

%

 

 

9.8

%

 

 

10.0

%

Total risk based capital ratio (1)

 

12.0

%

 

 

12.5

%

 

 

12.9

%

(1)

Regulatory capital ratios as of December 31, 2022 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 $36.7 million to $1.3 billion, and tangible common equity* increased $36.9 million to $1.3 billion at December 31, 2022 compared to a year ago, respectively, as earnings of $218.4 million more than offset a negative impact to accumulated other comprehensive income ("AOCI") from increased unrealized losses on investment securities of $158.1 million (net of taxes). Similarly, book value per common share increased to $39.08 from $37.32, and tangible book value per common share* increased to $38.97 at December 31, 2022 from $37.21 at December 31, 2021, respectively. Customers remains well capitalized by all regulatory measures.

At the Customers Bancorp level, the total risk based capital ratio (estimate), common equity to total assets ratio and tangible common equity to tangible assets ratio ("TCE ratio"), excluding PPP loans*, were 12.0%, 6.05% and 6.34%, respectively, at December 31, 2022.

At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At December 31, 2022, estimated Tier 1 capital and total risk-based capital were 11.1% and 12.2%, respectively.

Key Profitability Trends

Net Interest Income

Net interest income totaled $135.1 million in Q4 2022, a decrease of $23.9 million from Q3 2022, primarily due to lower PPP net interest income of $12.4 million resulting from reduced recognition of deferred fees of $7.0 million driven by lower loan forgiveness in Q4 2022 and increased funding costs of $5.0 million, reflecting increases in funding rates. Net interest income earned by the core bank* decreased $11.5 million over Q3 2022, reflecting the $500.0 million consumer loan sale in Q3 2022, higher funding costs, and shift in funding mix. The increase in interest income on investment securities and core loans* of $12.4 million and $25.7 million, respectively, mostly due to higher interest rates on variable loans in specialty lending, were offset by higher expenses paid on deposits, fed funds, FHLB advances and other borrowings of $57.6 million from a shift in deposit mix and higher interest rates during Q4 2022. Excluding PPP loans, average interest-earning assets increased $0.5 billion. Interest-earning asset growth was primarily driven by increases in C&I loans and leases, mostly in specialty lending, investment securities and interest earning deposits, partially offset by decreases in commercial loans to mortgage companies and consumer installment loans. Compared to Q3 2022, total loan yields increased 56 basis points to 5.64% primarily due to higher interest rates on variable rate loans in specialty lending. Excluding PPP loans, the Q4 2022 total loan yield* was 71 basis points higher than Q3 2022 reflecting increased interest rates and the variable rate nature of the loan portfolio.

Net interest income totaled $135.1 million in Q4 2022, a decrease of $58.6 million from Q4 2021, primarily due to lower PPP interest income of $74.8 million resulting from reduced recognition of deferred fees of $68.0 million driven by lower loan forgiveness in Q4 2022. This decrease was offset in part by increased net interest income earned by the core bank of $22.9 million, up 20% over Q4 2021, including increased interest income on investment securities and core loans* of $27.8 million and $95.6 million, respectively, mostly due to higher average balances and interest rates on variable loans in specialty lending. In addition, higher expenses paid on deposits, fed funds, FHLB advances and other borrowings of $114.2 million resulted mainly from a shift in deposit mix and higher interest rates during Q4 2022. Excluding PPP loans, average interest-earning assets increased $4.5 billion. Interest-earning asset growth was primarily driven by increases in C&I loans and leases, mostly in specialty lending, investment securities, multifamily loans and residential mortgages, offset in part by decreases in commercial loans to mortgage companies and interest earning deposits. Compared to Q4 2021, total loan yields increased 16 basis points to 5.64% primarily due to higher interest rates on variable rate loans in specialty lending, partially offset by lower PPP yields driven by lower deferred fee recognition. Excluding PPP loans, the Q4 2022 total loan yield* was 145 basis points higher than Q4 2021 reflecting increased interest rates and the variable rate nature of the loan portfolio.

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,

2022

 

September 30,

2022

 

 

December 31,

2022

 

December 31,

2021

 

Interchange and card revenue

$

71

 

 

$

72

 

 

$

(1

)

 

$

71

 

 

$

84

 

 

$

(13

)

Deposit fees

 

958

 

 

 

989

 

 

 

(31

)

 

 

958

 

 

 

1,026

 

 

 

(68

)

Commercial lease income

 

8,135

 

 

 

7,097

 

 

 

1,038

 

 

 

8,135

 

 

 

5,378

 

 

 

2,757

 

Bank-owned life insurance

 

1,975

 

 

 

3,449

 

 

 

(1,474

)

 

 

1,975

 

 

 

1,984

 

 

 

(9

)

Mortgage warehouse transactional fees

 

1,295

 

 

 

1,545

 

 

 

(250

)

 

 

1,295

 

 

 

2,262

 

 

 

(967

)

Gain (loss) on sale of SBA and other loans

 

 

 

 

106

 

 

 

(106

)

 

 

 

 

 

2,493

 

 

 

(2,493

)

Loss on sale of consumer installment loans

 

 

 

 

(23,465

)

 

 

23,465

 

 

 

 

 

 

 

 

 

 

Loan fees

 

4,017

 

 

 

3,008

 

 

 

1,009

 

 

 

4,017

 

 

 

2,513

 

 

 

1,504

 

Mortgage banking income

 

90

 

 

 

125

 

 

 

(35

)

 

 

90

 

 

 

262

 

 

 

(172

)

Gain (loss) on sale of investment securities

 

(16,937

)

 

 

(2,135

)

 

 

(14,802

)

 

 

(16,937

)

 

 

(49

)

 

 

(16,888

)

Unrealized gain (loss) on investment securities

 

28

 

 

 

(259

)

 

 

287

 

 

 

28

 

 

 

 

 

 

28

 

Unrealized gain (loss) on derivatives

 

43

 

 

 

563

 

 

 

(520

)

 

 

43

 

 

 

586

 

 

 

(543

)

Legal settlement gain

 

7,519

 

 

 

 

 

 

7,519

 

 

 

7,519

 

 

 

 

 

 

7,519

 

Other

 

151

 

 

 

(112

)

 

 

263

 

 

 

151

 

 

 

452

 

 

 

(301

)

Total non-interest income

$

7,345

 

 

$

(9,017

)

 

$

16,362

 

 

$

7,345

 

 

$

16,991

 

 

$

(9,646

)

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income totaled $7.3 million for Q4 2022, an increase of $16.4 million compared to Q3 2022. The increase was primarily due to $23.5 million of loss realized from the sale of $500 million of consumer installment loans as part of our balance sheet optimization initiatives in Q3 2022, which included the write-off of deferred origination costs and other transaction-related expenses, a $7.5 million gain from a court-approved settlement with a third party PPP service provider in Q4 2022 and higher commercial lease income and loan fees from continued growth. These increases were partially offset by higher losses realized from the sale of investment securities of $14.8 million to rebalance the investment portfolio with higher interest-earning securities and lower bank-owned life insurance income primarily due to death benefits received in Q3 2022.

Non-interest income totaled $7.3 million for Q4 2022, a decrease of $9.6 million compared to Q4 2021. The decrease was primarily due to lower gains realized from the sales of SBA and other loans, higher losses realized from the sale of investment securities of $16.9 million to rebalance the investment portfolio with higher interest-earning securities and lower mortgage warehouse transactional fees in Q4 2022 compared to Q4 2021 from lower housing activity due to rising interest rates, offset partially by $7.5 million of the gain from a court-approved settlement with a third party PPP service provider in Q4 2022 and higher commercial lease income and loan fees from continued growth.

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,

2022

 

September 30,

2022

 

 

December 31,

2022

 

December 31,

2021

 

Salaries and employee benefits

$

29,194

 

$

31,230

 

$

(2,036

)

 

$

29,194

 

$

29,940

 

$

(746

)

Technology, communication and bank operations

 

18,604

 

 

19,588

 

 

(984

)

 

 

18,604

 

 

22,657

 

 

(4,053

)

Professional services

 

6,825

 

 

6,269

 

 

556

 

 

 

6,825

 

 

7,058

 

 

(233

)

Occupancy

 

3,672

 

 

2,605

 

 

1,067

 

 

 

3,672

 

 

4,336

 

 

(664

)

Commercial lease depreciation

 

6,518

 

 

5,966

 

 

552

 

 

 

6,518

 

 

4,625

 

 

1,893

 

FDIC assessments, non-income taxes and regulatory fees

 

2,339

 

 

2,528

 

 

(189

)

 

 

2,339

 

 

2,427

 

 

(88

)

Loan servicing

 

4,460

 

 

3,851

 

 

609

 

 

 

4,460

 

 

4,361

 

 

99

 

Loan workout

 

714

 

 

217

 

 

497

 

 

 

714

 

 

226

 

 

488

 

Advertising and promotion

 

1,111

 

 

762

 

 

349

 

 

 

1,111

 

 

344

 

 

767

 

Other

 

4,982

 

 

3,182

 

 

1,800

 

 

 

4,982

 

 

5,574

 

 

(592

)

Total non-interest expense

$

78,419

 

$

76,198

 

$

2,221

 

 

$

78,419

 

$

81,548

 

$

(3,129

)

 

 

 

 

 

 

 

 

 

 

 

 

The management of non-interest expenses remains a priority for us. However, this will not be at the expense of not making adequate investments with new technologies to support efficient and responsible growth.

Non-interest expenses totaled $78.4 million in Q4 2022, $2.2 million higher than Q3 2022. The increase was primarily attributable to increases of $1.1 million in occupancy mostly due to increased lease related expenses, $0.6 million in loan servicing for consumer installment loans, $0.6 million in professional fees primarily for legal fees associated with a settlement with a third party SBA service provider, $0.6 million in commercial lease depreciation from continued growth in our equipment finance business, $0.5 million in loan workout related legal fees mostly related to a commercial mortgage warehouse borrower that filed for bankruptcy and $1.8 million in other non-interest expenses primarily associated with our team members' return to office and increases in business development related expenses and charitable contributions. These increases were offset partially by decreases in salaries and employee benefits of $2.0 million primarily due to lower headcount and incentives, $1.4 million in one-time severance expenses recorded in Q3 2022 and $1.0 million in technology, processing and deposit servicing-related expenses mostly due to lower deposit servicing fees paid to BM Technologies offset by higher software licenses and fees paid for software as a service.

Non-interest expenses totaled $78.4 million in Q4 2022, a decrease of $3.1 million compared to Q4 2021. The decrease was primarily attributable to decreases of $4.1 million in technology, processing and deposit servicing-related expenses mostly due to lower deposit servicing and interchange maintenance fees paid to BM Technologies, $0.7 million in salaries and employee benefits primarily due to lower incentives and $0.7 million in occupancy primarily due to expenses associated with the relocation of the Bank headquarters recorded in Q4 2021. These decreases were offset in part by increases of $1.9 million in commercial lease depreciation from continued growth and $0.8 million in advertising and promotion due to higher spending on media for our deposit products.

Taxes

Income tax expense from continuing operations decreased by $10.8 million to $7.1 million in Q4 2022 from $17.9 million in Q3 2022 primarily due to lower pre-tax income and increased investment tax credits.

Income tax expense from continuing operations decreased by $5.9 million to $7.1 million in Q4 2022 from $13.0 million in Q4 2021 primarily due to lower pre-tax income, partially offset by reduced investment tax credits.

The effective tax rate from continuing operations for Q4 2022 was 19.9% and 21.7% for the twelve months ended December 31, 2022. Customers expects the full-year 2023 effective tax rate from continuing operations to be approximately 22% to 24%.

Outlook

“Looking ahead, we expect to moderate growth as we optimize the balance sheet, further build out our deposit franchise, maximize our efficiency ratio with prudent expense management, and actively buy back common shares to the extent we remain trading below book value. We expect 2023 core loan growth to be in the low-to-mid single digits with tighter margins in the first half of 2023 and wider margins in the second half of 2023. Deposits are expected to remain relatively flat with a focus on reducing high cost deposits. Full year 2023 net interest margin is expected to be between 2.85% - 3.05%. 2023 Core EPS (excluding PPP) is expected to be between $6.00 - $6.25 with a return on common equity of over 15%. Core non interest expense (excluding BM Technologies expense) is expected to increase between 8% - 10% in 2023 and we are targeting a CET 1 ratio of approximately 9.5%. We are focused on improving the quality of our balance sheet and deposit franchise, improving our net interest margin, and achieving a book value in excess of $45 by year-end 2023. Customers Bancorp stock at the close of business on January 20, 2023 was trading at $31.12, only 0.8 times tangible book value* at December 31, 2022,” concluded Mr. 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:

Thursday, January 26, 2023

Time:

9:00 AM EDT

The live audio webcast, presentation slides, and earnings press release will be made available at 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 ; questions may also be asked during the webcast through the webcast application.

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

Institutional Background

Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s top-performing banking companies with over $20 billion in assets, making it one of the 100 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 experience delivered by best-in-class customer service. A pioneer in Banking-as-a-Service and digital banking products, Customers Bank is one of the very few banks that provides a blockchain-based 24/7/365 digital payment solution. 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 for Fund Finance, Equipment Finance, Financial Institutions, Technology and Venture, and Healthcare clients. Major accolades include:

  • #3 top-performing bank with over $10 billion in assets at year-end 2021 per S&P Global S&P Global Market Intelligence,
  • #6 in top-performing banks with assets between $10 billion and $50 billion in 2021 per American Banker, and
  • #21 out of the 100 largest publicly traded banks in 2022 per Forbes.

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: .

“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: the impact of the ongoing pandemic 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, 2021, 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 2022 Overview

The following table presents a summary of key earnings and performance metrics for the quarter ended December 31, 2022 and the preceding four quarters, and full year 2022 and 2021:

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,

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Profitability Metrics:

 

Net income available to common shareholders

(from continuing and discontinued operations)

$

25,623

 

 

$

61,364

 

 

$

56,519

 

 

$

74,896

 

 

$

98,647

 

 

$

218,402

 

 

$

300,134

 

 

Per share amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

$

0.79

 

 

$

1.89

 

 

$

1.73

 

 

$

2.27

 

 

$

3.02

 

 

$

6.69

 

 

$

9.29

 

 

Earnings per share - diluted

$

0.77

 

 

$

1.85

 

 

$

1.68

 

 

$

2.18

 

 

$

2.87

 

 

$

6.51

 

 

$

8.91

 

 

Book value per common share (1)

$

39.08

 

 

$

38.46

 

 

$

37.46

 

 

$

37.61

 

 

$

37.32

 

 

$

39.08

 

 

$

37.32

 

 

CUBI stock price (1)

$

28.34

 

 

$

29.48

 

 

$

33.90

 

 

$

52.14

 

 

$

65.37

 

 

$

28.34

 

 

$

65.37

 

 

CUBI stock price as % of book value (1)

 

73

%

 

 

77

%

 

 

90

%

 

 

139

%

 

 

175

%

 

 

73

%

 

 

175

%

 

Average shares outstanding - basic

 

32,413,459

 

 

 

32,455,814

 

 

 

32,712,616

 

 

 

32,957,033

 

 

 

32,625,960

 

 

 

32,632,751

 

 

 

32,312,262

 

 

Average shares outstanding - diluted

 

33,075,422

 

 

 

33,226,607

 

 

 

33,579,013

 

 

 

34,327,065

 

 

 

34,320,327

 

 

 

33,547,706

 

 

 

33,697,547

 

 

Shares outstanding (1)

 

32,373,697

 

 

 

32,475,502

 

 

 

32,449,486

 

 

 

32,957,847

 

 

 

32,913,267

 

 

 

32,373,697

 

 

 

32,913,267

 

 

Return on average assets ("ROAA")

 

0.55

%

 

 

1.24

%

 

 

1.17

%

 

 

1.63

%

 

 

2.08

%

 

 

1.13

%

 

 

1.64

%

 

Return on average common equity ("ROCE")

 

8.05

%

 

 

19.33

%

 

 

18.21

%

 

 

24.26

%

 

 

33.18

%

 

 

17.40

%

 

 

28.75

%

 

Net interest margin, tax equivalent

 

2.67

%

 

 

3.16

%

 

 

3.39

%

 

 

3.60

%

 

 

4.14

%

 

 

3.19

%

 

 

3.70

%

 

Efficiency ratio

 

49.20

%

 

 

50.00

%

 

 

42.14

%

 

 

39.42

%

 

 

38.70

%

 

 

44.81

%

 

 

40.38

%

 

Non-GAAP Profitability Metrics (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core earnings

$

39,368

 

 

$

82,270

 

 

$

59,367

 

 

$

75,410

 

 

$

101,213

 

 

$

256,415

 

 

$

344,700

 

 

Adjusted pre-tax pre-provision net income

$

81,377

 

 

$

100,994

 

 

$

105,692

 

 

$

112,649

 

 

$

130,595

 

 

$

400,712

 

 

$

471,046

 

 

Per share amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core earnings per share - diluted

$

1.19

 

 

$

2.48

 

 

$

1.77

 

 

$

2.20

 

 

$

2.95

 

 

$

7.63

 

 

$

10.23

 

 

Tangible book value per common share (1)

$

38.97

 

 

$

38.35

 

 

$

37.35

 

 

$

37.50

 

 

$

37.21

 

 

$

38.97

 

 

$

37.21

 

 

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

 

73

%

 

 

77

%

 

 

91

%

 

 

139

%

 

 

176

%

 

 

73

%

 

 

176

%

 

Core ROAA

 

0.81

%

 

 

1.64

%

 

 

1.23

%

 

 

1.64

%

 

 

2.13

%

 

 

1.32

%

 

 

1.86

%

 

Core ROCE

 

12.36

%

 

 

25.91

%

 

 

19.13

%

 

 

24.43

%

 

 

34.04

%

 

 

20.43

%

 

 

33.02

%

 

Adjusted ROAA - pre-tax and pre-provision

 

1.56

%

 

 

1.95

%

 

 

2.11

%

 

 

2.39

%

 

 

2.70

%

 

 

1.99

%

 

 

2.45

%

 

Adjusted ROCE - pre-tax and pre-provision

 

24.59

%

 

 

31.01

%

 

 

33.37

%

 

 

35.89

%

 

 

43.25

%

 

 

31.16

%

 

 

44.00

%

 

Net interest margin, tax equivalent, excluding PPP

 

2.87

%

 

 

3.18

%

 

 

3.32

%

 

 

3.32

%

 

 

3.12

%

 

 

3.16

%

 

 

3.16

%

 

Core efficiency ratio

 

49.12

%

 

 

42.57

%

 

 

41.74

%

 

 

39.47

%

 

 

38.14

%

 

 

43.02

%

 

 

37.54

%

 

Asset Quality:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs

$

27,164

 

 

$

18,497

 

 

$

13,481

 

 

$

7,226

 

 

$

7,582

 

 

$

66,368

 

 

$

33,798

 

 

Annualized net charge-offs to average total loans and leases

 

0.70

%

 

 

0.47

%

 

 

0.36

%

 

 

0.21

%

 

 

0.21

%

 

 

0.45

%

 

 

0.22

%

 

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

 

0.19

%

 

 

0.18

%

 

 

0.18

%

 

 

0.31

%

 

 

0.34

%

 

 

0.19

%

 

 

0.34

%

 

Reserves to NPLs (1)

 

425.95

%

 

 

466.34

%

 

 

557.76

%

 

 

333.15

%

 

 

277.72

%

 

 

425.95

%

 

 

277.72

%

 

Non-performing assets ("NPAs") to total assets

 

0.15

%

 

 

0.14

%

 

 

0.14

%

 

 

0.23

%

 

 

0.25

%

 

 

0.15

%

 

 

0.25

%

 

Customers Bank Capital Ratios (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital to risk-weighted assets

 

11.07

%

 

 

11.42

%

 

 

11.46

%

 

 

11.60

%

 

 

11.83

%

 

 

11.07

%

 

 

11.83

%

 

Tier 1 capital to risk-weighted assets

 

11.07

%

 

 

11.42

%

 

 

11.46

%

 

 

11.60

%

 

 

11.83

%

 

 

11.07

%

 

 

11.83

%

 

Total capital to risk-weighted assets

 

12.24

%

 

 

12.65

%

 

 

12.91

%

 

 

13.03

%

 

 

13.11

%

 

 

12.24

%

 

 

13.11

%

 

Tier 1 capital to average assets (leverage ratio)

 

8.15

%

 

 

8.10

%

 

 

8.09

%

 

 

8.21

%

 

 

7.93

%

 

 

8.15

%

 

 

7.93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 2022 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, 2022, our regulatory capital ratios reflected 75%, or $46.2 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,

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

$

218,740

 

 

$

200,457

 

 

$

168,941

 

 

$

157,175

 

 

$

198,000

 

 

$

745,313

 

 

$

736,822

 

Investment securities

 

42,953

 

 

 

30,546

 

 

 

25,442

 

 

 

20,295

 

 

 

15,202

 

 

 

119,236

 

 

 

40,413

 

Interest earning deposits

 

6,754

 

 

 

2,949

 

 

 

919

 

 

 

330

 

 

 

604

 

 

 

10,952

 

 

 

1,585

 

Other

 

1,200

 

 

 

1,964

 

 

 

1,032

 

 

 

5,676

 

 

 

231

 

 

 

9,872

 

 

 

2,064

 

Total interest income

 

269,647

 

 

 

235,916

 

 

 

196,334

 

 

 

183,476

 

 

 

214,037

 

 

 

885,373

 

 

 

780,884

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

124,366

 

 

 

65,380

 

 

 

22,781

 

 

 

13,712

 

 

 

15,415

 

 

 

226,239

 

 

 

62,641

 

FHLB advances

 

4,464

 

 

 

4,684

 

 

 

2,316

 

 

 

 

 

 

51

 

 

 

11,464

 

 

 

6,211

 

Subordinated debt

 

2,688

 

 

 

2,689

 

 

 

2,689

 

 

 

2,689

 

 

 

2,688

 

 

 

10,755

 

 

 

10,755

 

FRB PPP liquidity facility and other borrowings

 

2,992

 

 

 

4,131

 

 

 

3,696

 

 

 

2,376

 

 

 

2,189

 

 

 

13,195

 

 

 

16,203

 

Total interest expense

 

134,510

 

 

 

76,884

 

 

 

31,482

 

 

 

18,777

 

 

 

20,343

 

 

 

261,653

 

 

 

95,810

 

Net interest income

 

135,137

 

 

 

159,032

 

 

 

164,852

 

 

 

164,699

 

 

 

193,694

 

 

 

623,720

 

 

 

685,074

 

Provision (benefit) for credit losses

 

28,216

 

 

 

(7,994

)

 

 

23,847

 

 

 

15,997

 

 

 

13,890

 

 

 

60,066

 

 

 

27,426

 

Net interest income after provision (benefit) for credit losses

 

106,921

 

 

 

167,026

 

 

 

141,005

 

 

 

148,702

 

 

 

179,804

 

 

 

563,654

 

 

 

657,648

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interchange and card revenue

 

71

 

 

 

72

 

 

 

24

 

 

 

76

 

 

 

84

 

 

 

243

 

 

 

336

 

Deposit fees

 

958

 

 

 

989

 

 

 

964

 

 

 

940

 

 

 

1,026

 

 

 

3,851

 

 

 

3,774

 

Commercial lease income

 

8,135

 

 

 

7,097

 

 

 

6,592

 

 

 

5,895

 

 

 

5,378

 

 

 

27,719

 

 

 

21,107

 

Bank-owned life insurance

 

1,975

 

 

 

3,449

 

 

 

1,947

 

 

 

8,326

 

 

 

1,984

 

 

 

15,697

 

 

 

8,416

 

Mortgage warehouse transactional fees

 

1,295

 

 

 

1,545

 

 

 

1,883

 

 

 

2,015

 

 

 

2,262

 

 

 

6,738

 

 

 

12,874

 

Gain (loss) on sale of SBA and other loans

 

 

 

 

106

 

 

 

1,542

 

 

 

1,507

 

 

 

2,493

 

 

 

3,155

 

 

 

11,327

 

Loss on sale of consumer installment loans

 

 

 

 

(23,465

)

 

 

 

 

 

 

 

 

 

 

 

(23,465

)

 

 

 

Loan fees

 

4,017

 

 

 

3,008

 

 

 

2,618

 

 

 

2,545

 

 

 

2,513

 

 

 

12,188

 

 

 

7,527

 

Mortgage banking income

 

90

 

 

 

125

 

 

 

173

 

 

 

481

 

 

 

262

 

 

 

869

 

 

 

1,536

 

Gain (loss) on sale of investment securities

 

(16,937

)

 

 

(2,135

)

 

 

(3,029

)

 

 

(1,063

)

 

 

(49

)

 

 

(23,164

)

 

 

31,392

 

Unrealized gain (loss) on investment securities

 

28

 

 

 

(259

)

 

 

(203

)

 

 

(276

)

 

 

 

 

 

(710

)

 

 

2,720

 

Loss on sale of foreign subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,840

)

Unrealized gain (loss) on derivatives

 

43

 

 

 

563

 

 

 

821

 

 

 

964

 

 

 

586

 

 

 

2,391

 

 

 

3,208

 

Loss on cash flow hedge derivative terminations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24,467

)

Legal settlement gain

 

7,519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,519

 

 

 

 

Other

 

151

 

 

 

(112

)

 

 

(586

)

 

 

(212

)

 

 

452

 

 

 

(759

)

 

 

957

 

Total non-interest income

 

7,345

 

 

 

(9,017

)

 

 

12,746

 

 

 

21,198

 

 

 

16,991

 

 

 

32,272

 

 

 

77,867

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

29,194

 

 

 

31,230

 

 

 

25,334

 

 

 

26,607

 

 

 

29,940

 

 

 

112,365

 

 

 

108,202

 

Technology, communication and bank operations

 

18,604

 

 

 

19,588

 

 

 

22,738

 

 

 

24,068

 

 

 

22,657

 

 

 

84,998

 

 

 

83,544

 

Professional services

 

6,825

 

 

 

6,269

 

 

 

7,415

 

 

 

6,956

 

 

 

7,058

 

 

 

27,465

 

 

 

26,688

 

Occupancy

 

3,672

 

 

 

2,605

 

 

 

4,279

 

 

 

3,050

 

 

 

4,336

 

 

 

13,606

 

 

 

12,143

 

Commercial lease depreciation

 

6,518

 

 

 

5,966

 

 

 

5,552

 

 

 

4,942

 

 

 

4,625

 

 

 

22,978

 

 

 

17,824

 

FDIC assessments, non-income taxes and regulatory fees

 

2,339

 

 

 

2,528

 

 

 

1,619

 

 

 

2,383

 

 

 

2,427

 

 

 

8,869

 

 

 

10,061

 

Loan servicing

 

4,460

 

 

 

3,851

 

 

 

4,341

 

 

 

2,371

 

 

 

4,361

 

 

 

15,023

 

 

 

10,763

 

Merger and acquisition related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

418

 

Loan workout

 

714

 

 

 

217

 

 

 

179

 

 

 

(38

)

 

 

226

 

 

 

1,072

 

 

 

265

 

Advertising and promotion

 

1,111

 

 

 

762

 

 

 

353

 

 

 

315

 

 

 

344

 

 

 

2,541

 

 

 

1,520

 

Deposit relationship adjustment fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,216

 

Other

 

4,982

 

 

 

3,182

 

 

 

4,395

 

 

 

3,153

 

 

 

5,574

 

 

 

15,712

 

 

 

16,663

 

Total non-interest expense

 

78,419

 

 

 

76,198

 

 

 

76,205

 

 

 

73,807

 

 

 

81,548

 

 

 

304,629

 

 

 

294,307

 

Income before income tax expense

 

35,847

 

 

 

81,811

 

 

 

77,546

 

 

 

96,093

 

 

 

115,247

 

 

 

291,297

 

 

 

441,208

 

Income tax expense

 

7,136

 

 

 

17,899

 

 

 

18,896

 

 

 

19,332

 

 

 

12,993

 

 

 

63,263

 

 

 

86,940

 

Net income from continuing operations

$

28,711

 

 

$

63,912

 

 

$

58,650

 

 

$

76,761

 

 

$

102,254

 

 

$

228,034

 

 

$

354,268

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

Q4

 

Q3

 

Q2

 

Q1

 

Q4

 

December 31,

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Loss from discontinued operations before income taxes

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

(20,354

)

Income tax expense (benefit) from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

1,585

 

 

 

 

 

 

19,267

 

Net loss from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,585

)

 

 

 

 

 

(39,621

)

Net income

 

28,711

 

 

 

63,912

 

 

 

58,650

 

 

 

76,761

 

 

 

100,669

 

 

 

228,034

 

 

 

314,647

 

Preferred stock dividends

 

3,088

 

 

 

2,548

 

 

 

2,131

 

 

 

1,865

 

 

 

2,022

 

 

 

9,632

 

 

 

11,693

 

Loss on redemption of preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,820

 

Net income available to common shareholders

$

25,623

 

 

$

61,364

 

 

$

56,519

 

 

$

74,896

 

 

$

98,647

 

 

$

218,402

 

 

$

300,134

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share from continuing operations

$

0.79

 

 

$

1.89

 

 

$

1.73

 

 

$

2.27

 

 

$

3.07

 

 

$

6.69

 

 

$

10.51

 

Basic earnings per common share

 

0.79

 

 

 

1.89

 

 

 

1.73

 

 

 

2.27

 

 

 

3.02

 

 

 

6.69

 

 

 

9.29

 

Diluted earnings per common share from continuing operations

 

0.77

 

 

 

1.85

 

 

 

1.68

 

 

 

2.18

 

 

 

2.92

 

 

 

6.51

 

 

 

10.08

 

Diluted earnings per common share

 

0.77

 

 

 

1.85

 

 

 

1.68

 

 

 

2.18

 

 

 

2.87

 

 

 

6.51

 

 

 

8.91

 

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET - UNAUDITED

(Dollars in thousands)

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

58,025

 

 

$

41,520

 

 

$

66,703

 

 

$

55,515

 

 

$

35,238

 

Interest earning deposits

 

397,781

 

 

 

362,945

 

 

 

178,475

 

 

 

219,085

 

 

 

482,794

 

Cash and cash equivalents

 

455,806

 

 

 

404,465

 

 

 

245,178

 

 

 

274,600

 

 

 

518,032

 

Investment securities, at fair value

 

2,987,500

 

 

 

2,943,694

 

 

 

3,144,882

 

 

 

4,169,853

 

 

 

3,817,150

 

Investment securities held to maturity

 

840,259

 

 

 

886,294

 

 

 

495,039

 

 

 

 

 

 

 

Loans held for sale

 

328,312

 

 

 

5,224

 

 

 

6,595

 

 

 

3,003

 

 

 

16,254

 

Loans receivable, mortgage warehouse, at fair value

 

1,323,312

 

 

 

1,569,090

 

 

 

1,874,603

 

 

 

1,755,758

 

 

 

2,284,325

 

Loans receivable, PPP

 

998,153

 

 

 

1,154,632

 

 

 

1,570,160

 

 

 

2,195,902

 

 

 

3,250,008

 

Loans and leases receivable

 

13,144,894

 

 

 

12,607,742

 

 

 

12,212,995

 

 

 

10,118,855

 

 

 

9,018,298

 

Allowance for credit losses on loans and leases

 

(130,924

)

 

 

(130,197

)

 

 

(156,530

)

 

 

(145,847

)

 

 

(137,804

)

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

 

15,335,435

 

 

 

15,201,267

 

 

 

15,501,228

 

 

 

13,924,668

 

 

 

14,414,827

 

FHLB, Federal Reserve Bank, and other restricted stock

 

74,196

 

 

 

64,112

 

 

 

74,626

 

 

 

54,553

 

 

 

64,584

 

Accrued interest receivable

 

123,374

 

 

 

107,621

 

 

 

98,727

 

 

 

94,669

 

 

 

92,239

 

Bank premises and equipment, net

 

9,025

 

 

 

6,610

 

 

 

6,755

 

 

 

8,233

 

 

 

8,890

 

Bank-owned life insurance

 

338,441

 

 

 

336,130

 

 

 

335,153

 

 

 

332,239

 

 

 

333,705

 

Goodwill and other intangibles

 

3,629

 

 

 

3,629

 

 

 

3,629

 

 

 

3,678

 

 

 

3,736

 

Other assets

 

400,135

 

 

 

408,575

 

 

 

340,184

 

 

 

298,212

 

 

 

305,611

 

Total assets

$

20,896,112

 

 

$

20,367,621

 

 

$

20,251,996

 

 

$

19,163,708

 

 

$

19,575,028

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Demand, non-interest bearing deposits

$

1,885,045

 

 

$

2,993,793

 

 

$

4,683,030

 

 

$

4,594,428

 

 

$

4,459,790

 

Interest bearing deposits

 

16,271,908

 

 

 

14,528,645

 

 

 

12,261,689

 

 

 

11,821,132

 

 

 

12,318,134

 

Total deposits

 

18,156,953

 

 

 

17,522,438

 

 

 

16,944,719

 

 

 

16,415,560

 

 

 

16,777,924

 

Federal funds purchased

 

 

 

 

365,000

 

 

 

770,000

 

 

 

700,000

 

 

 

75,000

 

FHLB advances

 

800,000

 

 

 

500,000

 

 

 

635,000

 

 

 

 

 

 

700,000

 

Other borrowings

 

123,580

 

 

 

123,515

 

 

 

123,450

 

 

 

223,230

 

 

 

223,086

 

Subordinated debt

 

181,952

 

 

 

181,882

 

 

 

181,812

 

 

 

181,742

 

 

 

181,673

 

Accrued interest payable and other liabilities

 

230,666

 

 

 

287,855

 

 

 

243,625

 

 

 

265,770

 

 

 

251,128

 

Total liabilities

 

19,493,151

 

 

 

18,980,690

 

 

 

18,898,606

 

 

 

17,786,302

 

 

 

18,208,811

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

137,794

 

 

 

137,794

 

 

 

137,794

 

 

 

137,794

 

 

 

137,794

 

Common stock

 

35,012

 

 

 

34,948

 

 

 

34,922

 

 

 

34,882

 

 

 

34,722

 

Additional paid in capital

 

551,721

 

 

 

549,066

 

 

 

545,670

 

 

 

542,402

 

 

 

542,391

 

Retained earnings

 

924,134

 

 

 

898,511

 

 

 

837,147

 

 

 

780,628

 

 

 

705,732

 

Accumulated other comprehensive income (loss), net

 

(163,096

)

 

 

(156,126

)

 

 

(124,881

)

 

 

(62,548

)

 

 

(4,980

)

Treasury stock, at cost

 

(82,604

)

 

 

(77,262

)

 

 

(77,262

)

 

 

(55,752

)

 

 

(49,442

)

Total shareholders' equity

 

1,402,961

 

 

 

1,386,931

 

 

 

1,353,390

 

 

 

1,377,406

 

 

 

1,366,217

 

Total liabilities and shareholders' equity

$

20,896,112

 

 

$

20,367,621

 

 

$

20,251,996

 

 

$

19,163,708

 

 

$

19,575,028

 

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

December 31, 2022

 

September 30, 2022

 

December 31, 2021

 

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

$

693,563

 

$

6,754

 

3.86

%

 

$

528,001

 

$

2,949

 

2.22

%

 

$

1,568,510

 

$

604

 

0.15

%

Investment securities (1)

 

4,061,555

 

 

42,953

 

4.23

%

 

 

3,770,922

 

 

30,546

 

3.24

%

 

 

2,621,844

 

 

15,202

 

2.32

%

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial: