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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the
Securities Exchange Act of 1934

Date of Report (date of earliest event reported): October 31, 2024


Capture.jpg

(Exact name of registrant as specified in its charter)
Customers Bancorp, Inc.
Pennsylvania001-3554227-2290659
(State or other jurisdiction of
incorporation or organization)		(Commission File number)(IRS Employer
Identification No.)
701 Reading Avenue
West Reading PA 19611
(Address of principal executive offices, including zip code)
(610) 933-2000
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instructions A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





Securities registered pursuant to Section 12(g) of the Act:
Title of Each ClassTrading SymbolsName of Each Exchange on which Registered
Voting Common Stock, par value $1.00 per shareCUBINew York Stock Exchange
Fixed-to-Floating Rate Non-Cumulative Perpetual
Preferred Stock, Series E, par value $1.00 per share		CUBI/PENew York Stock Exchange
Fixed-to-Floating Rate Non-Cumulative Perpetual
Preferred Stock, Series F, par value $1.00 per share		CUBI/PFNew York Stock Exchange
5.375% Subordinated Notes due 2034CUBBNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.         Results of Operations and Financial Condition

On October 31, 2024, Customers Bancorp, Inc. (the "Company") issued a press release announcing unaudited financial information for the quarter ended September 30, 2024, a copy of which is included as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein.


Item 7.01         Regulation FD Disclosure

The Company has posted to its website a slide presentation which is attached hereto as Exhibit 99.2 to this Current Report on Form 8-K and incorporated into this Item 7.01 by reference.

The information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 attached hereto and incorporated by reference into Item 2.02 and Item 7.01, respectively, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. Furthermore, such information, including the exhibits attached hereto, shall not be deemed incorporated by reference into any of the Company's reports or filings with the SEC, whether made before or after the date hereof, except as expressly set forth by specific reference in such report or filing. The information in this Current Report on Form 8-K, including the exhibits attached hereto, shall not be deemed an admission as to the materiality of any information in this Current Report on Form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.

Item 9.01.        Financial Statements and Exhibits

(d) Exhibits.
ExhibitDescription
Press Release dated October 31, 2024
Slide presentation dated October 2024



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

CUSTOMERS BANCORP, INC.
By: /s/ Philip S. Watkins
Name: Philip S. Watkins
Title: Executive Vice President - Chief Financial Officer


Date: October 31, 2024




EXHIBIT INDEX

Exhibit No.Description
Press Release dated October 31, 2024
Slide presentation dated October 2024



Exhibit 99.1
customersbancorp_logoxprima.jpg
Customers Bancorp, Inc. (NYSE:CUBI)
701 Reading Avenue
West Reading, PA 19611

Contact:
Jordan Baucum, Head of Corporate Communications 951-608-8314
Customers Bancorp Reports Results for Third Quarter 2024
Third Quarter 2024 Highlights
•Q3 2024 net income available to common shareholders was $42.9 million, or $1.31 per diluted share; ROAA was 0.88% and ROCE was 10.44%.
•Q3 2024 core earnings*1 were $43.8 million, or $1.34 per diluted share; Core ROAA* was 0.89% and Core ROCE* was 10.66%.
•CET 1 ratio of 12.5%2 at September 30, 2024, compared to 12.8% at June 30, 2024, above the 11.5% target.
•TCE / TA ratio* of 7.7% at September 30, 2024, compared to 7.7% at June 30, 2024, above the 7.5% target.
•Total loans and leases held for investment grew by $520.8 million in Q3 2024 from Q2 2024 or 16% annualized.
•Q3 2024 deposit inflows from commercial customers of $1.1 billion funded the paydown of $0.7 billion of higher-cost commercial and consumer deposits. Total deposits increased by $391.3 million in Q3 2024 from Q2 2024.
•Total estimated insured deposits were 75%3 of total deposits at September 30, 2024, with immediately available liquidity covering estimated uninsured deposits3 by approximately 183%.
•Q3 2024 net interest margin, tax equivalent (“NIM”) was 3.06%, compared to Q2 2024 NIM of 3.29% primarily due to lower discount accretion and prepayment income in Q3 2024 as well as lower average consumer installment loan balances and securities portfolio repositioning.
•Non-performing assets were $47.3 million, or 0.22% of total assets, at September 30, 2024 compared to 0.23% at June 30, 2024.
•Q3 2024 provision for credit losses on loans and leases was $17.8 million compared to $17.9 million in Q2 2024 and the allowance for credit losses on loans and leases equaled 281% of non-performing loans at September 30, 2024, compared to 280% at June 30, 2024.
•Q3 2024 book value per share and tangible book value per share* both grew by approximately $2.26, or 4.5% over Q2 2024, or 17.7% annualized, with a tangible book value per share* of $52.96 at September 30, 2024. This was driven by current quarter earnings and a decrease in AOCI losses of $25.3 million.



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

CEO Commentary
West Reading, PA, October 31, 2024 - “Customers Bancorp continued to deliver on its strategic priorities to grow our franchise value through lower-cost and granular deposit inflows and diversified loan growth while we manage our operational risks,” said Customers Bancorp Chairman and CEO Jay Sidhu. “We have strong momentum as we pursue phase two of our deposit transformation strategy – remixing existing higher-cost business unit deposits*1 and brokered deposits into core lower-cost and granular deposits. We started the year with robust pipeline within our existing businesses which has been materially enhanced by the new commercial banking teams that joined Customers in April. In the quarter, we utilized deposit growth from commercial customers of $1.1 billion to paydown $0.7 billion of higher-cost commercial and consumer client deposits. In the third quarter, these inflows were, once again, broad-based with more than 25 different channels increasing balances and 70% of channels contributing $25 million or more. Our new deposit focused commercial banking teams have opened over 3,000 new deposit accounts since joining and gathered $536 million in deposits at an interest rate of approximately 2.9% with approximately 30% being non-interest bearing. Our deposit pipelines continue to grow with an extraordinary conversion ratio. We repurchased 373,974 shares of common stock under the previously authorized share repurchase program at an average price below Tangible Book Value per share*. Even with the share repurchase and balance sheet growth, our TCE / TA ratio* remained flat. Enhanced by the addition of our new banking teams, we believe we are extremely well-positioned to continue to strengthen our deposit franchise, improve our profitability, and maintain our already strong capital ratios,” stated Jay Sidhu.
“Our Q3 2024 GAAP earnings were $42.9 million, or $1.31 per diluted share, and core earnings* were $43.8 million, or $1.34 per diluted share. At September 30, 2024, our deposit base was well diversified, with approximately 75%2 of total deposits insured. We maintain a strong liquidity position, with $8.3 billion of liquidity immediately available, which covers approximately 183% of uninsured deposits2 and our loan to deposit ratio was 78%. We continue to focus loan production where we have a holistic and primary relationship. Total loans and leases held for investment grew by $520.8 million which represent a 16% annualized growth rate, driven by strong commercial loan growth of $539.5 million. Our loan pipeline continued to build during the third quarter, and we remain confident in achieving the 10% – 15% loan growth outlook previously provided. We continue to hold strong levels of liquidity and capital to support the needs of our customers. Asset quality remains strong, and a clear differentiator for us, with our NPA ratio at just 0.22% of total assets and reserve levels are robust at 281% of total non-performing loans at the end of Q3 2024. Total net charge-offs declined by $1.7 million and the combined level of special mention and substandard commercial loans declined by $44.0 million during the quarter. Our exposure to the higher risk commercial real estate office sector is minimal, representing approximately 1% of the loan portfolio. We will remain disciplined, but opportunistic, with our balance sheet capacity to manage risk and maintain robust capital levels. Tangible Book Value per share* grew to $52.96. We are excited and optimistic about the opportunities ahead which have been enhanced by the addition of the new banking teams,” Jay Sidhu continued.







*Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.
1 Total deposits excluding wholesale CDs and BMTX student-related deposits.
2 Uninsured deposits (estimate) of $6.1 billion to be reported on the Bank’s call report, less deposits of $1.4 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $136.5 million.
2

Financial Highlights
(Dollars in thousands, except per share data)
At or Three Months EndedIncrease (Decrease)
September 30, 2024June 30, 2024
Profitability Metrics:
Net income available for common shareholders$42,937 $54,300 $(11,363)(20.9)%
Diluted earnings per share$1.31 $1.66 $(0.35)(21.1)%
Core earnings*$43,838 $48,567 $(4,729)(9.7)%
Adjusted core earnings*
$41,381 $48,567 $(7,186)(14.8)%
Core earnings per share*$1.34 $1.49 $(0.15)(10.1)%
Adjusted core earnings per share*
$1.26 $1.49 $(0.23)(15.4)%
Return on average assets (“ROAA”)
0.88 %1.11 %(0.23)
Core ROAA*0.89 %1.00 %(0.11)
Adjusted core ROAA*
0.85 %1.00 %(0.15)
Return on average common equity (“ROCE”)
10.44 %13.85 %(3.41)
Core ROCE*10.66 %12.39 %(1.73)
Adjusted core ROCE*
10.06 %12.39 %(2.33)
Core pre-tax pre-provision net income*
$64,824 $89,220 $(24,396)(27.3)%
Adjusted core pre-tax pre-provision net income*
$61,827 $89,220 $(27,393)(30.7)%
Net interest margin, tax equivalent3.06 %3.29 %(0.23)
Yield on loans (Loan yield)
6.99 %7.17 %(0.18)
Cost of deposits3.46 %3.40 %0.06 
Efficiency ratio62.40 %51.87 %10.53 
Core efficiency ratio*61.69 %53.47 %8.22 
Adjusted core efficiency ratio*
63.48 %53.47 %10.01 
Non-interest expense to average total assets
1.95 %1.98 %(0.03)
Core non-interest expense to average total assets*
1.94 %1.93 %0.01 
Adjusted core non-interest expense to average total assets*
1.99 %1.93 %0.06 
Balance Sheet Trends:
Total assets$21,456,082 $20,942,975 $513,107 2.5 %
Total cash and investment securities
$6,564,528 $6,523,036 $41,492 0.6 %
Total loans and leases$14,053,116 $13,632,639 $420,477 3.1 %
Non-interest bearing demand deposits$4,670,809 $4,474,862 $195,947 4.4 %
Total deposits$18,069,389 $17,678,093 $391,296 2.2 %
Capital Metrics:
Common Equity$1,663,386 $1,609,071 $54,315 3.4 %
Tangible Common Equity*$1,659,757 $1,605,442 $54,315 3.4 %
Common Equity to Total Assets7.8 %7.7 %0.1 
Tangible Common Equity to Tangible Assets*7.7 %7.7 %— 
Book Value per common share$53.07 $50.81 $2.26 4.4 %
Tangible Book Value per common share*$52.96 $50.70 $2.26 4.5 %
Common equity Tier 1 capital ratio (1)
12.5 %12.8 %(0.3)
Total risk based capital ratio (1)
15.4 %15.8 %(0.4)
(1) Regulatory capital ratios as of September 30, 2024 are estimates.
*Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.
3

Financial Highlights
(Dollars in thousands, except per share data)
At or Three Months EndedIncrease (Decrease)Nine Months EndedIncrease (Decrease)
September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Profitability Metrics:
Net income available for common shareholders$42,937 $82,953 $(40,016)(48.2)%$143,163 $177,225 $(34,062)(19.2)%
Diluted earnings per share$1.31 $2.58 $(1.27)(49.2)%$4.37 $5.53 $(1.16)(21.0)%
Core earnings*$43,838 $83,294 $(39,456)(47.4)%$138,937 $186,600 $(47,663)(25.5)%
Adjusted core earnings*
$41,381 $83,294 $(41,913)(50.3)%$145,085 $186,600 $(41,515)(22.2)%
Core earnings per share*$1.34 $2.59 $(1.25)(48.3)%$4.24 $5.82 $(1.58)(27.1)%
Adjusted core earnings per share*
$1.26 $2.59 $(1.33)(51.4)%$4.43 $5.82 $(1.39)(23.9)%
Return on average assets (“ROAA”)
0.88 %1.57 %(0.69)0.97 %1.17 %(0.20)
Core ROAA*0.89 %1.57 %(0.68)0.95 %1.22 %(0.27)
Adjusted core ROAA*
0.85 %1.57 %(0.72)0.99 %1.22 %(0.23)
Return on average common equity (“ROCE”)
10.44 %23.97 %(13.53)12.10 %17.84 %(5.74)
Core ROCE*10.66 %24.06 %(13.40)11.74 %18.79 %(7.05)
Adjusted core ROCE*
10.06 %24.06 %(14.00)12.26 %18.79 %(6.53)
Core pre-tax pre-provision net income*
$64,824 $128,564 $(63,740)(49.6)%$237,718 $314,679 $(76,961)(24.5)%
Adjusted core pre-tax pre-provision net income*
$61,827 $128,564 $(66,737)(51.9)%$246,035 $314,679 $(68,644)(21.8)%
Net interest margin, tax equivalent3.06 %3.70 %(0.64)3.16 %3.28 %(0.12)
Yield on loans (Loan yield)
6.99 %7.87 %(0.88)7.07 %7.12 %(0.05)
Cost of deposits3.46 %3.24 %0.22 3.44 %3.23 %0.21 
Efficiency ratio62.40 %41.01 %21.39 55.97 %45.62 %10.35 
Core efficiency ratio*61.69 %41.04 %20.65 56.29 %45.03 %11.26 
Adjusted core efficiency ratio*
63.48 %41.04 %22.44 54.75 %45.03 %9.72 
Non-interest expense to average total assets
1.95 %1.62 %0.33 1.93 %1.61 %0.32 
Core non-interest expense to average total assets*
1.94 %1.62 %0.32 1.91 %1.60 %0.31 
Adjusted core non-interest expense to average total assets*
1.99 %1.62 %0.37 1.86 %1.60 %0.26 
(1) Regulatory capital ratios as of September 30, 2024 are estimates.
*Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

4

Financial Highlights
(Dollars in thousands, except per share data)
At or Three Months EndedIncrease (Decrease)
September 30, 2024September 30, 2023
Balance Sheet Trends:
Total assets$21,456,082 $21,857,152 $(401,070)(1.8)%
Total cash and investment securities
$6,564,528 $7,371,551 $(807,023)(10.9)%
Total loans and leases$14,053,116 $13,713,482 $339,634 2.5 %
Non-interest bearing demand deposits$4,670,809 $4,758,682 $(87,873)(1.8)%
Total deposits$18,069,389 $18,195,364 $(125,975)(0.7)%
Capital Metrics:
Common Equity$1,663,386 $1,423,813 $239,573 16.8 %
Tangible Common Equity*$1,659,757 $1,420,184 $239,573 16.9 %
Common Equity to Total Assets7.8 %6.5 %1.3 
Tangible Common Equity to Tangible Assets*7.7 %6.5 %1.2 
Book Value per common share$53.07 $45.47 $7.60 16.7 %
Tangible Book Value per common share*$52.96 $45.36 $7.60 16.8 %
Common equity Tier 1 capital ratio (1)
12.5 %11.3 %1.2 
Total risk based capital ratio (1)
15.4 %14.3 %1.1 
(1) Regulatory capital ratios as of September 30, 2024 are estimates.
*Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.
5

Key Balance Sheet Trends
Loans and Leases
The following table presents the composition of total loans and leases as of the dates indicated:
(Dollars in thousands)September 30, 2024% of TotalJune 30, 2024% of TotalSeptember 30, 2023% of Total
Loans and Leases Held for Investment
Commercial:
Commercial & industrial:
Specialized lending$5,468,507 39.7 %$5,528,745 41.7 %$5,422,161 40.0 %
Other commercial & industrial (1)
1,087,222 7.9 1,092,146 8.2 1,252,427 9.2 
Mortgage finance1,367,617 9.9 1,122,812 8.5 1,042,549 7.7 
Multifamily2,115,978 15.4 2,067,332 15.6 2,130,213 15.7 
Commercial real estate owner occupied981,904 7.1 805,779 6.1 794,815 5.9 
Commercial real estate non-owner occupied1,326,591 9.6 1,202,606 9.1 1,178,203 8.7 
Construction174,509 1.3 163,409 1.2 252,588 1.8 
Total commercial loans and leases12,522,328 90.9 11,982,829 90.4 12,072,956 89.0 
Consumer:
Residential500,786 3.6 481,503 3.6 483,133 3.6 
Manufactured housing34,481 0.3 35,901 0.3 40,129 0.3 
Installment:
Personal453,739 3.3 474,481 3.6 629,843 4.6 
Other266,362 1.9 282,201 2.1 337,053 2.5 
Total installment loans720,101 5.2 756,682 5.7 966,896 7.1 
Total consumer loans1,255,368 9.1 1,274,086 9.6 1,490,158 11.0 
Total loans and leases held for investment$13,777,696 100.0 %$13,256,915 100.0 %$13,563,114 100.0 %
Loans Held for Sale
Residential$2,523 0.9 %$2,684 0.7 %$1,005 0.7 %
Installment:
Personal55,799 20.3 125,598 33.4 124,848 83.0 
Other217,098 78.8 247,442 65.9 24,515 16.3 
Total installment loans272,897 99.1 373,040 99.3 149,363 99.3 
Total loans held for sale$275,420 100.0 %$375,724 100.0 %$150,368 100.0 %
Total loans and leases portfolio$14,053,116 $13,632,639 $13,713,482 
(1)    Includes PPP loans of $30.5 million, $38.3 million and $137.1 million as of September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
Loans and Leases Held for Investment
Loans and leases held for investment were $13.8 billion at September 30, 2024, up $520.8 million, or 3.9%, from June 30, 2024. Mortgage finance loans increased by $244.8 million, or 21.8% quarter-over-quarter. Owner-occupied commercial real estate loans increased by $176.1 million, or 21.9% to $981.9 million. Non-owner occupied commercial real estate loans increased by $124.0 million, or 10.3% to $1.3 billion. Multifamily loans increased by $48.6 million, or 2.4% to $2.1 billion. Specialized lending decreased by $60.2 million, or 1.1% quarter-over-quarter, to $5.5 billion. Other commercial and industrial loans decreased by $4.9 million, or 0.5% quarter-over-quarter, to $1.1 billion. Consumer installment loans held for investment decreased by $36.6 million, or 4.8% quarter-over-quarter, to $720.1 million.
6

Loans and leases held for investment of $13.8 billion at September 30, 2024 were up $214.6 million, or 1.6%, year-over-year. Mortgage finance loans increased by $325.1 million, or 31.2% year-over-year due to higher mortgage activity from lower interest rates. Owner-occupied commercial real estate loans increased by $187.1 million. Non-owner occupied commercial real estate loans increased by $148.4 million. Specialized lending increased by $46.3 million. Consumer installment loans decreased by $246.8 million, or 25.5% year-over-year due to the continued build out of the held-for-sale strategy and de-risking of the held-for-investment loan portfolio. Other commercial and industrial loans decreased by $165.2 million, which included decreases in PPP loans primarily from guarantee payments. Construction loans decreased by $78.1 million.
Loans Held for Sale
Loans held for sale decreased $100.3 million quarter-over-quarter, and were $275.4 million at September 30, 2024 including the sale of consumer installment loans that were classified as held for sale with a carrying value of $200.8 million in Q3 2024. As part of these sales, Customers recognized a loss on sale of $0.3 million, which is presented within net gain (loss) on sale of loans and leases in the consolidated statement of income in Q3 2024.
Allowance for Credit Losses on Loans and Leases
The following table presents the allowance for credit losses on loans and leases as of the dates and for the periods presented:
At or Three Months EndedIncrease (Decrease)At or Three Months EndedIncrease (Decrease)
(Dollars in thousands)September 30, 2024June 30, 2024September 30, 2024September 30, 2023
Allowance for credit losses on loans and leases$133,158 $132,436 $722 $133,158 $139,213 $(6,055)
Provision (benefit) for credit losses on loans and leases$17,766 $17,851 $(85)$17,766 $17,055 $711 
Net charge-offs from loans held for investment$17,044 $18,711 $(1,667)$17,044 $17,498 $(454)
Annualized net charge-offs to average loans and leases0.50 %0.56 %0.50 %0.50 %
Coverage of credit loss reserves for loans and leases held for investment1.06 %1.08 %1.06 %1.10 %
Net charge-offs decreased modestly with $17.0 million in Q3 2024, compared to $18.7 million in Q2 2024 and $17.5 million in Q3 2023.
Provision (benefit) for Credit Losses
Three Months EndedIncrease (Decrease)Three Months EndedIncrease (Decrease)
(Dollars in thousands)September 30, 2024June 30, 2024September 30, 2024September 30, 2023
Provision (benefit) for credit losses on loans and leases
$17,766 $17,851 $(85)$17,766 $17,055 $711 
Provision (benefit) for credit losses on available for sale debt securities(700)270 (970)(700)801 (1,501)
Provision for credit losses17,066 18,121 (1,055)17,066 17,856 (790)
Provision (benefit) for credit losses on unfunded commitments642 1,594 (952)642 48 594 
Total provision for credit losses$17,708 $19,715 $(2,007)$17,708 $17,904 $(196)
The provision for credit losses on loans and leases in Q3 2024 was $17.8 million, compared to $17.9 million in Q2 2024. The lower provision in Q3 2024 was primarily due to slight improvements in macroeconomic forecasts.
The provision for credit losses on available for sale investment securities in Q3 2024 was a benefit to provision of $0.7 million, compared to provision of $0.3 million in Q2 2024.
7

The provision for credit losses on loans and leases in Q3 2024 was $17.8 million, compared to $17.1 million in Q3 2023. The higher provision in Q3 2024 compared to the year ago period was primarily due to higher balances in commercial and industrial loan balances held for investment, partially offset by lower balances in consumer installment loans held for investment.
The provision for credit losses on available for sale investment securities in Q3 2024 was a benefit to provision of $0.7 million compared to provision of $0.8 million in Q3 2023.
Asset Quality
The following table presents asset quality metrics as of the dates indicated:
(Dollars in thousands)September 30, 2024June 30, 2024Increase (Decrease)September 30, 2024September 30, 2023Increase (Decrease)
Non-performing assets (“NPAs”):
Nonaccrual / non-performing loans (“NPLs”)
$47,326 $47,380 $(54)$47,326 $29,867 $17,459 
Non-performing assets$47,326 $47,444 $(118)$47,326 $29,970 $17,356 
NPLs to total loans and leases
0.34 %0.35 %0.34 %0.22 %
Reserves to NPLs
281.36 %279.52 %281.36 %466.11 %
NPAs to total assets0.22 %0.23 %0.22 %0.14 %
Loans and leases (1) risk ratings:
Commercial loans and leases
Pass$10,844,500 $10,500,922 $343,578 $10,844,500 $10,503,731 $340,769 
Special Mention
178,026 170,014 8,012 178,026 189,329 (11,303)
Substandard
218,921 270,898 (51,977)218,921 280,267 (61,346)
Total commercial loans and leases11,241,447 10,941,834 299,613 11,241,447 10,973,327 268,120 
Consumer loans
Performing1,240,581 1,256,816 (16,235)1,240,581 1,473,493 (232,912)
Non-performing14,787 17,270 (2,483)14,787 16,665 (1,878)
Total consumer loans1,255,368 1,274,086 (18,718)1,255,368 1,490,158 (234,790)
Loans and leases receivable (1)
$12,496,815 $12,215,920 $280,895 $12,496,815 $12,463,485 $33,330 
(1)    Risk ratings are assigned to loans and leases held for investment, and excludes loans held for sale, loans receivable, mortgage finance, at fair value and eligible PPP loans that are fully guaranteed by the Small Business Administration.
Over the last decade, the Bank has developed a suite of commercial loan products with one particularly important common denominator: relatively low credit risk assumption. The Bank’s commercial and industrial (“C&I”), mortgage finance, corporate and specialized lending lines of business, and multifamily loans for example, are characterized by conservative underwriting standards and historically low loss rates. Because of this emphasis, the Bank’s credit quality to date has been incredibly healthy despite an adverse economic environment. Maintaining strong asset quality also requires a highly active portfolio monitoring process. In addition to frequent client outreach and monitoring at the individual loan level, management employs a bottom-up data driven approach to analyze the commercial portfolio.
Total consumer installment loans held for investment at September 30, 2024 were less than 4% of total assets and approximately 5% of total loans and leases held for investment, and were supported by an allowance for credit losses of $50.1 million. At September 30, 2024, the consumer installment portfolio had the following characteristics: average original FICO score of 746, average debt-to-income of 20% and average borrower income of $101 thousand.
Non-performing loans at September 30, 2024 decreased to 0.34% of total loans and leases, compared to 0.35% at June 30, 2024 and increased, compared to 0.22% at September 30, 2023.
Investment Securities
The investment securities portfolio, including debt securities classified as available for sale (“AFS”) and held to maturity (“HTM”) provides periodic cash flows through regular maturities and amortization, can be used as collateral to secure additional funding, and is an important component of the Bank’s liquidity position.
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The following table presents the composition of the investment securities portfolio as of the dates indicated:
(Dollars in thousands)September 30, 2024June 30, 2024September 30, 2023
Debt securities, available for sale$2,377,733 $2,477,758 $2,746,729 
Equity securities34,336 33,892 26,478 
Investment securities, at fair value2,412,069 2,511,650 2,773,207 
Debt securities, held to maturity1,064,437 962,799 1,178,370 
Total investment securities portfolio$3,476,506 $3,474,449 $3,951,577 
Customers’ securities portfolio is highly liquid, short in duration, and high in yield. At September 30, 2024, the AFS debt securities portfolio had a spot yield of 5.23%, an effective duration of approximately 2.0 years, and approximately 30% are variable rate. Additionally, 63% of the AFS securities portfolio was AAA rated at September 30, 2024.
At September 30, 2024, the HTM debt securities portfolio represented only 5.0% of total assets at September 30, 2024, had a spot yield of 4.31% and an effective duration of approximately 3.5 years. Additionally, at September 30, 2024, approximately 43% of the HTM securities were AAA rated and 51% were credit enhanced asset backed securities with no current expectation of credit losses.
As a part of the sales of consumer installment loans that were classified as held for sale, Customers provided financing to the purchaser for a portion of the sale price in the form of $160.0 million of asset-backed securities, collateralized by the sold loans, which mostly accounted for the increase in HTM debt securities at September 30, 2024 as compared to the prior quarter.
Deposits
The following table presents the composition of our deposit portfolio as of the dates indicated:
(Dollars in thousands)September 30, 2024% of TotalJune 30, 2024% of TotalSeptember 30, 2023% of Total
Demand, non-interest bearing$4,670,809 25.9 %$4,474,862 25.3 %$4,758,682 26.2 %
Demand, interest bearing5,606,500 31.0 5,894,056 33.4 5,824,410 32.0 
Total demand deposits10,277,309 56.9 10,368,918 58.7 10,583,092 58.2 
Savings1,399,968 7.7 1,573,661 8.9 1,118,353 6.1 
Money market3,961,028 21.9 3,539,815 20.0 2,499,593 13.7 
Time deposits2,431,084 13.5 2,195,699 12.4 3,994,326 22.0 
Total deposits$18,069,389 100.0 %$17,678,093 100.0 %$18,195,364 100.0 %
Total deposits increased $391.3 million, or 2.2%, to $18.1 billion at September 30, 2024 as compared to the prior quarter. Non-interest bearing demand deposits increased $195.9 million, or 4.4%, to $4.7 billion. Money market deposits increased $421.2 million, or 11.9%, to $4.0 billion and time deposits increased $235.4 million, or 10.7%, to $2.4 billion. These increases were offset by decreases in interest bearing demand deposits of $287.6 million, or 4.9%, to $5.6 billion and savings deposits of $173.7 million, or 11.0%, to $1.4 billion. The total average cost of deposits increased by 6 basis points to 3.46% in Q3 2024 from 3.40% in the prior quarter. Total estimated uninsured deposits were $4.5 billion1, or 25% of total deposits (inclusive of accrued interest) at September 30, 2024. Customers is also highly focused on total deposits with contractual term to manage its liquidity profile and the funding of loans and securities.
“Our deposit costs increased in the quarter attributable to strong deposit growth in the interest bearing category. We’re extremely excited about the success we’re having in bringing new clients to the bank and the long-term franchise value it will drive outweighing any short-term impacts. With the remix efforts underway and in a declining rate environment we expect to have flexibility lowering interest bearing deposit costs going forward including as these newer relationships season,” stated Jay Sidhu.

1 Uninsured deposits (estimate) of $6.1 billion to be reported on the Bank’s call report, less deposits of $1.4 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $136.5 million.
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Total deposits decreased $126.0 million, or 0.7%, to $18.1 billion at September 30, 2024 as compared to a year ago. Time deposits decreased $1.6 billion, or 39.1% to $2.4 billion, interest bearing demand deposits decreased $217.9 million, or 3.7%, to $5.6 billion and non-interest bearing demand deposits decreased $87.9 million, or 1.8%, to $4.7 billion. These decreases were offset by increases in money market deposits of $1.5 billion, or 58.5%, to $4.0 billion and savings deposits of $281.6 million, or 25.2%, to $1.4 billion. The total average cost of deposits increased by 22 basis points to 3.46% in Q3 2024 from 3.24% in the prior year primarily due to higher market interest rates.
Borrowings
The following table presents the composition of our borrowings as of the dates indicated:
(Dollars in thousands)September 30, 2024June 30, 2024September 30, 2023
FHLB advances$1,117,229 $1,018,349 $1,529,839 
Senior notes99,033 123,970 123,775 
Subordinated debt182,439 182,370 182,161 
Total borrowings$1,398,701 $1,324,689 $1,835,775 
Total borrowings increased $74.0 million, or 5.6%, to $1.4 billion at September 30, 2024 as compared to the prior quarter. This increase primarily resulted from an increase of $80.0 million in FHLB advances, partially offset by repayment of $25.0 million in senior notes upon maturity. As of September 30, 2024, Customers’ immediately available borrowing capacity with the FRB and FHLB was approximately $7.7 billion, of which $1.1 billion of available capacity was utilized in borrowings and $1.5 billion was utilized to collateralize deposits.
Total borrowings decreased $437.1 million, or 23.8%, to $1.4 billion at September 30, 2024 as compared to a year ago. This decrease primarily resulted from net repayments of $435.0 million in FHLB advances and $25.0 million in senior notes upon maturity.
Capital
The following table presents certain capital amounts and ratios as of the dates indicated:
(Dollars in thousands except per share data)September 30, 2024June 30, 2024September 30, 2023
Customers Bancorp, Inc.
Common Equity$1,663,386 $1,609,071 $1,423,813 
Tangible Common Equity*$1,659,757 $1,605,442 $1,420,184 
Common Equity to Total Assets7.8 %7.7 %6.5 %
Tangible Common Equity to Tangible Assets*7.7 %7.7 %6.5 %
Book Value per common share$53.07 $50.81 $45.47 
Tangible Book Value per common share*$52.96 $50.70 $45.36 
Common equity Tier 1 (“CET 1”) capital ratio (1)
12.5 %12.8 %11.3 %
Total risk based capital ratio (1)
15.4 %15.8 %14.3 %
(1) Regulatory capital ratios as of September 30, 2024 are estimates.
*Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.
Customers Bancorp’s common equity increased $54.3 million to $1.7 billion, and tangible common equity* increased $54.3 million to $1.7 billion, at September 30, 2024 compared to the prior quarter, respectively, primarily from earnings of $42.9 million and decreased unrealized losses on investment securities of $25.3 million (net of taxes) deferred in accumulated other comprehensive income (“AOCI”). These increases were offset in part by $18.2 million of common share repurchases in Q3 2024. Similarly, book value per common share increased to $53.07 from $50.81, and tangible book value per common share* increased to $52.96 from $50.70, at September 30, 2024 and June 30, 2024, respectively.
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Customers Bancorp’s common equity increased $239.6 million to $1.7 billion, and tangible common equity* increased $239.6 million to $1.7 billion, at September 30, 2024 compared to a year ago, respectively, primarily from earnings of $201.4 million and decreased unrealized losses on investment securities in AOCI of $43.7 million (net of taxes), offset in part by $18.2 million of common share repurchases. Similarly, book value per common share increased to $53.07 from $45.47, and tangible book value per common share* increased to $52.96 from $45.36, at September 30, 2024 and September 30, 2023, respectively.
At the Customers Bancorp level, the CET 1 ratio (estimate), total risk based capital ratio (estimate), common equity to total assets ratio and tangible common equity to tangible assets ratio* (“TCE / TA ratio”) were 12.5%, 15.4%, 7.8%, and 7.7%, respectively, at September 30, 2024.
At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At September 30, 2024, Tier 1 capital (estimate) and total risk based capital (estimate) were 13.6% and 15.1%, respectively.
Key Profitability Trends
Net Interest Income
Net interest income totaled $158.5 million in Q3 2024, a decrease of $9.1 million from Q2 2024. This decrease was due to lower interest income of $1.9 million primarily due to lower interest income from loans in specialized lending, lower consumer installment loans and higher interest expense of $7.2 million due to higher costs of deposits and other borrowings.
“Net interest income and net interest margin declined in the quarter impacted by higher discount accretion and prepayment income that were benefits in Q2 2024 and did not repeat at the same levels in Q3 2024, as well as initiatives that were proactive risk management strategies including the $200.8 million consumer installment loan sale in Q3 2024 resulting in lower average balances and the well-timed securities portfolio repositioning completed in Q2 2024. These factors accounted for over 80% of the decline in reported net interest margin. Robust loan growth and accretive deposit remix remain as positive drivers that we expect to help increase net interest income and net interest margin in 2025,” stated Customers Bancorp President Sam Sidhu. “These positive drivers are bolstered by the recent team additions. Our new commercial deposit-focused banking teams have substantial momentum and it is clear we have the bankers, products and balance sheet strength to deliver for our new and existing clients. We continue to believe the overwhelming majority of client prospects will become Customers Bank clients in the near future,” stated Sam Sidhu.
Net interest income totaled $158.5 million in Q3 2024, a decrease of $41.2 million from Q3 2023. This decrease was due to lower interest income in specialized lending primarily due to approximately $27.0 million of interest income attributable to outsized discount accretion recognized on the acquired loan portfolio in Q3 2023.
Non-Interest Income
The following table presents details of non-interest income for the periods indicated:
Three Months EndedIncrease (Decrease)Three Months EndedIncrease (Decrease)
(Dollars in thousands)September 30, 2024June 30, 2024September 30, 2024September 30, 2023
Commercial lease income$10,093 $10,282 $(189)$10,093 $8,901 $1,192 
Loan fees8,011 5,233 2,778 8,011 6,029 1,982 
Bank-owned life insurance 2,049 2,007 42 2,049 1,973 76 
Mortgage finance transactional fees1,087 1,058 29 1,087 1,018 69 
Net gain (loss) on sale of loans and leases(14,548)(238)(14,310)(14,548)(348)(14,200)
Net gain (loss) on sale of investment securities— (719)719 — (429)429 
Unrealized gain on equity method investments— 11,041 (11,041)— — — 
Other1,865 2,373 (508)1,865 631 1,234 
Total non-interest income$8,557 $31,037 $(22,480)$8,557 $17,775 $(9,218)
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Reported non-interest income totaled $8.6 million for Q3 2024, a decrease of $22.5 million compared to Q2 2024. The decrease was primarily due to $11.0 million of unrealized gain on equity method investments purchased at a discount in Q2 2024 and $14.3 million of loss on leases of commercial clean vehicles that were accounted for as sales-type leases and included within net gain (loss) on sale of loans and leases. These commercial clean vehicle leases generated the same amount of investment tax credits that were included as a benefit to income tax expense in Q3 2024. These decreases were partially offset by an increase of $2.8 million in loan fees primarily resulting from increased unused line of credit fees.
Non-interest income totaled $8.6 million for Q3 2024, a decrease of $9.2 million compared to Q3 2023. As stated above, the decrease was primarily due to $14.3 million of loss on leases of commercial clean vehicles that were accounted for as sales-type leases and included within net gain (loss) on sale of loans and leases. These commercial clean vehicle leases generated the same amount of investment tax credits that were included as a corresponding benefit to income tax expense in Q3 2024. This decrease was partially offset by increases in commercial lease income of $1.2 million and loan fees of $2.0 million primarily resulting from increased unused line of credit fees.
Non-Interest Expense
The following table presents details of non-interest expense for the periods indicated:
Three Months EndedIncrease (Decrease)Three Months EndedIncrease (Decrease)
(Dollars in thousands)September 30, 2024June 30, 2024September 30, 2024September 30, 2023
Salaries and employee benefits$47,717 $44,947 $2,770 $47,717 $33,845 $13,872 
Technology, communication and bank operations13,588 16,227 (2,639)13,588 15,667 (2,079)
Commercial lease depreciation7,811 7,829 (18)7,811 7,338 473 
Professional services9,048 6,104 2,944 9,048 8,569 479 
Loan servicing3,778 3,516 262 3,778 3,858 (80)
Occupancy2,987 3,120 (133)2,987 2,471 516 
FDIC assessments, non-income taxes and regulatory fees7,902 10,236 (2,334)7,902 8,551 (649)
Advertising and promotion908 1,254 (346)908 650 258 
Legal settlement expense— — — — 4,096 (4,096)
Other10,279 10,219 60 10,279 4,421 5,858 
Total non-interest expense$104,018 $103,452 $566 $104,018 $89,466 $14,552 
Non-interest expenses totaled $104.0 million in Q3 2024, an increase of $0.6 million compared to Q2 2024. The increase was primarily attributable to increases of $2.8 million in salaries and employee benefits driven by higher headcount including the full quarter impact of Q2 2024 hires, annual merit increases, incentives partially offset by lower severance and $2.9 million in professional fees, partially offset by lower non-income taxes, software expenditures and processing fees.
“In the quarter we incurred professional services expense of approximately $3.0 million as we made investments to enhance our risk management infrastructure. We expect to spend an additional $3.0-$5.0 million in each of the next two quarters as we seek to build a best-in-class risk management function which we believe can be a competitive advantage for the bank in the future,” stated Sam Sidhu.
Non-interest expenses totaled $104.0 million in Q3 2024, an increase of $14.6 million compared to Q3 2023. The increase was primarily attributable to increases of $13.9 million in salaries and employee benefits primarily due to higher headcount including the addition of new banking teams in Q2 2024, annual merit increases, incentives and severance, fees paid to a fintech company related to consumer installment loans originated and held for sale as a part of the Bank’s held for sale strategy, and provision for operating losses. These increases were partially offset by $4.1 million of expenses from a settlement with a third party PPP service provider in Q3 2023 and a decrease in deposit servicing fees.
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Taxes
Income tax expense decreased by $19.8 million to a benefit of $0.7 million in Q3 2024 from a provision of $19.0 million in Q2 2024 primarily due to lower pre-tax income and higher estimated income tax credits for 2024, including $14.3 million of investment tax credits generated from commercial clean vehicles in Q3 2024. These investment tax credits from commercial clean vehicle leases were the same amount as the loss on leases of commercial clean vehicles included within net gain (loss) on sale of loans and leases.
Income tax expense decreased by $24.2 million to a benefit of $0.7 million in Q3 2024 from a provision of $23.5 million in Q3 2023 primarily due to lower pre-tax income and an increase in estimated income tax credits for 2024, including $14.3 million of investment tax credits generated from commercial clean vehicles in Q3 2024. These investment tax credits from commercial clean vehicle leases were the same amount as the loss on leases of commercial clean vehicles included within net gain (loss) on sale of loans and leases. The effective tax rate for Q3 2024 was (1.6)%.
Outlook
“Looking forward, our strategy remains unchanged. We are focused on strengthening our deposit franchise, improving our profitability and maintaining our strong capital ratios. Our deposit pipelines are expected to continue to improve the quality and mix of deposits, reducing higher cost business unit deposits*1 with lower cost deposits where we have a holistic and primary relationship. The addition of the new banking teams is accelerating and enhancing these efforts which were already well underway. We see attractive opportunities to execute franchise-enhancing loan growth and our pipeline continues to be strong. We remain confident in our ability to deliver 10% - 15% loan growth for the full year. While the interest earning asset repositioning and the hedging we executed impacts our short term margin and will be a headwind in 2024, they will positively impact profitability and earnings in 2025. We expect net interest margin in Q4 2024 to be roughly flattish with Q3 2024. The management of non-interest expenses remains a priority for us. We expect the investments made in recruiting the new commercial banking teams will produce significant benefits by increasing our net interest income and net interest margin as well as improving the overall quality of our deposit franchise. We believe the investments we are making to enhance our risk management infrastructure will pay dividends over the long-term. We previously noted an $8.0-$10.0 million quarterly investment in the new commercial banking teams in 2024 and now about $3.0-$5.0 million of quarterly professional service expense in enhancing our risk management infrastructure for a few quarters. Looking forward we expect the new teams to breakeven in Q1 2025 and payoff throughout 2025 as well as a sunsetting of the additional professional services costs. We would also note that we had an $11.0 million unrealized gain on equity method investments purchased at a discount in Q2 2024 which helped offset some of these investment related expenses. While our efficiency ratio will be elevated in the near term as we make these investments in our future, we remain fundamentally focused on positive operating leverage and working to enable the organization to operate at a mid-40’s efficiency ratio over the medium-term. We are adjusting our guidance on effective tax rate to 18% - 20% primarily as a result of higher estimated investment tax credits in 2024. We remain committed to maintaining CET 1 ratio and TCE / TA ratio* targets of 11.5% and 7.5%, respectively in 2024. We are highly focused on preserving superior credit quality, managing interest rate risk, maintaining robust liquidity, operating with higher capital ratios and generating positive operating leverage,” concluded Sam Sidhu.





*Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.
1 Total deposits excluding wholesale CDs and BMTX student-related deposits.
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Webcast
Date:            Friday, November 1, 2024        
Time:            9:00 AM EDT
The live audio webcast, presentation slides, and earnings press release will be made available at https://www.customersbank.com and at the Customers Bancorp 3rd Quarter Earnings Webcast.
You may submit questions in advance of the live webcast by emailing our Head of Corporate Communications, Jordan Baucum at jbaucum@customersbank.com.
The webcast will be archived for viewing on the Customers Bank Investor Relations page and available beginning approximately two hours after the conclusion of the live event.
Institutional Background
Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s top-performing banking companies with over $21 billion in assets making it one of the 80 largest bank holding companies in the U.S. Customers Bank’s commercial and consumer clients benefit from a full suite of technology-enabled tailored product experiences delivered by best-in-class customer service distinguished by a Single Point of Contact approach. In addition to traditional lines such as C&I lending, commercial real estate lending and multifamily lending, Customers Bank also provides a number of national corporate banking services to specialized lending clients. Major accolades include:
•No. 1 on American Banker 2024 list of top-performing banks with $10B to $50B in assets
•No. 29 out of the 100 largest publicly traded banks in 2024 Forbes Best Banks list
•No. 52 on Investor’s Business Daily 100 Best Stocks for 2023
A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender. Learn more: www.customersbank.com.
“Safe Harbor” Statement
In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Customers Bancorp, Inc.’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “project,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.’s control). Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause Customers Bancorp, Inc.’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements, including: a continuation of the recent turmoil in the banking industry, responsive measures taken by us and regulatory authorities to mitigate and manage related risks, regulatory actions taken that address related issues and the costs and obligations associated therewith, such as the FDIC special assessments; the potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to our reputation; effects of competition on deposit rates and growth, loan rates and growth and net interest margin; failure to identify and adequately and promptly address cybersecurity risks, including data breaches and cyberattacks; public health crises and pandemics and their effects on the economic and business environments in which we operate; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the war between Russia and Ukraine and escalating conflict in the Middle East, which could impact economic conditions in the United States; the impact that changes in the economy
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have on the performance of our loan and lease portfolio, the market value of our investment securities, the demand for our products and services and the availability of sources of funding; the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that affect market interest rates and the money supply; actions that we and our customers take in response to these developments and the effects such actions have on our operations, products, services and customer relationships; higher inflation and its impacts; and the effects of any changes in accounting standards or policies. Customers Bancorp, Inc. cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Customers Bancorp, Inc.’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K for the year ended December 31, 2023, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, including any amendments thereto, that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Customers Bancorp, Inc. does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Customers Bancorp, Inc. or by or on behalf of Customers Bank, except as may be required under applicable law.
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Q3 2024 Overview
The following table presents a summary of key earnings and performance metrics for the quarter ended September 30, 2024 and the preceding four quarters:
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
EARNINGS SUMMARY - UNAUDITED
(Dollars in thousands, except per share data and stock price data)
Q3Q2Q1Q4Q3Nine Months Ended September 30,
2024202420242023202320242023
GAAP Profitability Metrics:
Net income available to common shareholders
$42,937 $54,300 $45,926 $58,223 $82,953 $143,163 $177,225 
Per share amounts:
Earnings per share - basic
$1.36 $1.72 $1.46 $1.86 $2.65 $4.54 $5.63 
Earnings per share - diluted$1.31 $1.66 $1.40 $1.79 $2.58 $4.37 $5.53 
Book value per common share (1)
$53.07 $50.81 $49.29 $47.73 $45.47 $53.07 $45.47 
CUBI stock price (1)
$46.45 $47.98 $53.06 $57.62 $34.45 $46.45 $34.45 
CUBI stock price as % of book value (1)
88 %94 %108 %121 %76 %88 %76 %
Average shares outstanding - basic31,567,797 31,649,715 31,473,424 31,385,043 31,290,581 31,563,660 31,452,700 
Average shares outstanding - diluted32,766,488 32,699,149 32,854,534 32,521,787 32,175,084 32,773,365 32,036,459 
Shares outstanding (1)
31,342,107 31,667,655 31,521,931 31,440,906 31,311,254 31,342,107 31,311,254 
Return on average assets (“ROAA”)
0.88 %1.11 %0.94 %1.16 %1.57 %0.97 %1.17 %
Return on average common equity (“ROCE”)
10.44 %13.85 %12.08 %15.93 %23.97 %12.10 %17.84 %
Net interest margin, tax equivalent 3.06 %3.29 %3.10 %3.31 %3.70 %3.16 %3.28 %
Efficiency ratio62.40 %51.87 %54.58 %49.08 %41.01 %55.97 %45.62 %
Non-GAAP Profitability Metrics (2):
Core earnings$43,838 $48,567 $46,532 $61,633 $83,294 $138,937 $186,600 
Core pre-tax pre-provision net income
$64,824 $89,220 $83,674 $101,884 $128,564 $237,718 $314,679 
Per share amounts:
Core earnings per share - diluted$1.34 $1.49 $1.42 $1.90 $2.59 $4.24 $5.82 
Tangible book value per common share (1)
$52.96 $50.70 $49.18 $47.61 $45.36 $52.96 $45.36 
CUBI stock price as % of tangible book value (1)
88 %95 %108 %121 %76 %88 %76 %
Core ROAA0.89 %1.00 %0.95 %1.22 %1.57 %0.95 %1.22 %
Core ROCE10.66 %12.39 %12.24 %16.87 %24.06 %11.74 %18.79 %
Core pre-tax pre-provision ROAA
1.21 %1.71 %1.58 %1.90 %2.32 %1.50 %1.95 %
Core pre-tax pre-provision ROCE
14.84 %21.79 %21.01 %26.82 %36.04 %19.12 %30.59 %
Core efficiency ratio61.69 %53.47 %54.24 %46.70 %41.04 %56.29 %45.03 %
Asset Quality:
Net charge-offs $17,044 $18,711 $17,968 $17,322 $17,498 $53,723 $51,713 
Annualized net charge-offs to average total loans and leases0.50 %0.56 %0.55 %0.51 %0.50 %0.54 %0.47 %
Non-performing loans (“NPLs”) to total loans and leases (1)
0.34 %0.35 %0.27 %0.21 %0.22 %0.34 %0.22 %
Reserves to NPLs (1)
281.36 %279.52 %373.86 %499.12 %466.11 %281.36 %466.11 %
Non-performing assets (“NPAs”) to total assets
0.22 %0.23 %0.17 %0.13 %0.14 %0.22 %0.14 %
Customers Bank Capital Ratios (3):
Common equity Tier 1 capital to risk-weighted assets13.6 %14.17 %14.16 %13.77 %12.97 %13.6 %12.97 %
Tier 1 capital to risk-weighted assets 13.6 %14.17 %14.16 %13.77 %12.97 %13.6 %12.97 %
Total capital to risk-weighted assets 15.1 %15.64 %15.82 %15.28 %14.45 %15.1 %14.45 %
Tier 1 capital to average assets (leverage ratio) 9.1 %9.16 %8.82 %8.71 %8.25 %9.1 %8.25 %
(1) Metric is a spot balance for the last day of each quarter presented.
(2) Customers’ reasons for the use of these non-GAAP measures and a detailed reconciliation between the non-GAAP measures and the comparable GAAP amounts are included at the end of this document.
(3) Regulatory capital ratios are estimated for Q3 2024 and actual for the remaining periods. In accordance with regulatory capital rules, Customers elected to apply the CECL capital transition provisions which delayed the effects of CECL on regulatory capital for two years until January 1, 2022, followed by a three-year transition period. The cumulative CECL capital transition impact as of December 31, 2021 which amounted to $61.6 million will be phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of September 30, 2024, our regulatory capital ratios reflected 25%, or $15.4 million, benefit associated with the CECL transition provisions.

16

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Dollars in thousands, except per share data)Nine Months Ended
Q3Q2Q1Q4Q3September 30,
2024202420242023202320242023
Interest income:
Loans and leases$228,659 $224,265 $217,999 $239,453 $271,107 $670,923 $757,064 
Investment securities46,265 47,586 46,802 51,074 54,243 140,653 149,585 
Interest earning deposits44,372 45,506 52,817 44,104 43,800 142,695 81,819 
Loans held for sale10,907 13,671 12,048 8,707 4,664 36,626 27,514 
Other1,910 3,010 2,111 2,577 2,526 7,031 5,463 
Total interest income332,113 334,038 331,777 345,915 376,340 997,928 1,021,445 
Interest expense:
Deposits155,829 148,784 153,725 150,307 145,825 458,338 426,130 
FHLB advances12,590 13,437 13,485 18,868 26,485 39,512 61,140 
FRB advances— — — — — — 6,286 
Subordinated debt3,537 2,734 2,689 2,688 2,689 8,960 8,067 
Other borrowings1,612 1,430 1,493 1,546 1,568 4,535 4,879 
Total interest expense173,568 166,385 171,392 173,409 176,567 511,345 506,502 
Net interest income158,545 167,653 160,385 172,506 199,773 486,583 514,943 
Provision for credit losses17,066 18,121 17,070 13,523 17,856 52,257 61,088 
Net interest income after provision for credit losses141,479 149,532 143,315 158,983 181,917 434,326 453,855 
Non-interest income:
Commercial lease income10,093 10,282 9,683 9,035 8,901 30,058 27,144 
Loan fees8,011 5,233 5,280 5,926 6,029 18,524 14,290 
Bank-owned life insurance 2,049 2,007 3,261 2,160 1,973 7,317 9,617 
Mortgage finance transactional fees1,087 1,058 946 927 1,018 3,091 3,468 
Net gain (loss) on sale of loans and leases(14,548)(238)10 (91)(348)(14,776)(1,109)
Loss on sale of capital call lines of credit— — — — — — (5,037)
Net gain (loss) on sale of investment securities— (719)(30)(145)(429)(749)(429)
Unrealized gain on equity method investments— 11,041 — — — 11,041 — 
Other1,865 2,373 2,081 860 631 6,319 3,949 
Total non-interest income8,557 31,037 21,231 18,672 17,775 60,825 51,893 
Non-interest expense:
Salaries and employee benefits47,717 44,947 36,025 33,965 33,845 128,689 99,310 
Technology, communication and bank operations13,588 16,227 21,904 16,887 15,667 51,719 48,663 
Commercial lease depreciation7,811 7,829 7,970 7,357 7,338 23,610 22,541 
Professional services9,048 6,104 6,353 9,820 8,569 21,505 25,357 
Loan servicing3,778 3,516 4,031 3,779 3,858 11,325 13,296 
Occupancy2,987 3,120 2,347 2,320 2,471 8,454 7,750 
FDIC assessments, non-income taxes and regulatory fees7,902 10,236 13,469 13,977 8,551 31,607 21,059 
Advertising and promotion908 1,254 682 850 650 2,844 2,245 
Legal settlement expense— — — — 4,096 — 4,096 
Other10,279 10,219 6,388 4,812 4,421 26,886 14,579 
Total non-interest expense104,018 103,452 99,169 93,767 89,466 306,639 258,896 
Income before income tax expense (benefit)46,018 77,117 65,377 83,888 110,226 188,512 246,852 
Income tax expense (benefit)(725)19,032 15,651 21,796 23,470 33,958 58,801 
Net income46,743 58,085 49,726 62,092 86,756 154,554 188,051 
Preferred stock dividends3,806 3,785 3,800 3,869 3,803 11,391 10,826 
Net income available to common shareholders$42,937 $54,300 $45,926 $58,223 $82,953 $143,163 $177,225 
Basic earnings per common share$1.36 $1.72 $1.46 $1.86 $2.65 $4.54 $5.63 
Diluted earnings per common share 1.31 1.66 1.40 1.79 2.58 4.37 5.53 
17

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - UNAUDITED
(Dollars in thousands)
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
ASSETS
Cash and due from banks$39,429 $45,045 $51,974 $45,210 $68,288 
Interest earning deposits3,048,593 3,003,542 3,649,146 3,801,136 3,351,686 
Cash and cash equivalents3,088,022 3,048,587 3,701,120 3,846,346 3,419,974 
Investment securities, at fair value2,412,069 2,511,650 2,604,868 2,405,640 2,773,207 
Investment securities held to maturity1,064,437 962,799 1,032,037 1,103,170 1,178,370 
Loans held for sale275,420 375,724 357,640 340,317 150,368 
Loans and leases receivable12,527,283 12,254,204 11,936,621 11,963,855 12,600,548 
Loans receivable, mortgage finance, at fair value1,250,413 1,002,711 962,610 897,912 962,566 
Allowance for credit losses on loans and leases(133,158)(132,436)(133,296)(135,311)(139,213)
Total loans and leases receivable, net of allowance for credit losses on loans and leases13,644,538 13,124,479 12,765,935 12,726,456 13,423,901 
FHLB, Federal Reserve Bank, and other restricted stock95,035 92,276 100,067 109,548 126,098 
Accrued interest receivable115,588 112,788 120,123 114,766 123,984 
Bank premises and equipment, net6,730 7,019 7,253 7,371 7,789 
Bank-owned life insurance295,531 293,108 293,400 292,193 291,670 
Goodwill and other intangibles3,629 3,629 3,629 3,629 3,629 
Other assets455,083 410,916 361,295 366,829 358,162 
Total assets$21,456,082 $20,942,975 $21,347,367 $21,316,265 $21,857,152 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Demand, non-interest bearing deposits$4,670,809 $4,474,862 $4,688,880 $4,422,494 $4,758,682 
Interest bearing deposits13,398,580 13,203,231 13,272,503 13,497,742 13,436,682 
Total deposits18,069,389 17,678,093 17,961,383 17,920,236 18,195,364 
FHLB advances1,117,229 1,018,349 1,195,088 1,203,207 1,529,839 
Other borrowings99,033 123,970 123,905 123,840 123,775 
Subordinated debt182,439 182,370 182,300 182,230 182,161 
Accrued interest payable and other liabilities186,812 193,328 193,074 248,358 264,406 
Total liabilities19,654,902 19,196,110 19,655,750 19,677,871 20,295,545 
Preferred stock137,794 137,794 137,794 137,794 137,794 
Common stock35,734 35,686 35,540 35,459 35,330 
Additional paid in capital571,609 567,345 567,490 564,538 559,346 
Retained earnings1,302,745 1,259,808 1,205,508 1,159,582 1,101,359 
Accumulated other comprehensive income (loss), net(106,082)(131,358)(132,305)(136,569)(149,812)
Treasury stock, at cost(140,620)(122,410)(122,410)(122,410)(122,410)
Total shareholders’ equity1,801,180 1,746,865 1,691,617 1,638,394 1,561,607 
Total liabilities and shareholders’ equity$21,456,082 $20,942,975 $21,347,367 $21,316,265 $21,857,152 

18

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
(Dollars in thousands)
Three Months Ended
September 30, 2024June 30, 2024September 30, 2023
Average BalanceInterest Income or Expense
Average Yield or Cost (%)
Average BalanceInterest Income or ExpenseAverage Yield or Cost (%)Average BalanceInterest Income or ExpenseAverage Yield or Cost (%)
Assets
Interest earning deposits $3,224,940 $44,372 5.47%$3,325,771 $45,506 5.50%$3,211,753 $43,800 5.41%
Investment securities (1)
3,706,974 46,265 4.97%3,732,565 47,586 5.13%4,240,116 54,243 5.12%
Loans and leases:
Commercial & industrial:
Specialized lending loans and leases (2)
5,805,389 124,667 8.54%5,446,882 120,977 8.93%5,717,252 157,671 10.94%
Other commercial & industrial loans (2)(3)
1,533,057 24,654 6.40%1,540,191 25,119 6.56%1,779,778 28,616 6.38%
Mortgage finance loans1,267,656 17,723 5.56%1,151,407 15,087 5.27%1,159,698 16,916 5.79%
Multifamily loans2,071,340 21,147 4.06%2,108,835 21,461 4.09%2,141,384 21,292 3.94%
Non-owner occupied commercial real estate loans1,411,533 21,065 5.94%1,396,771 20,470 5.89%1,425,831 21,208 5.90%
Residential mortgages525,285 6,082 4.61%520,791 5,955 4.60%528,022 5,965 4.48%
Installment loans1,029,812 24,228 9.36%1,186,486 28,867 9.79%1,147,069 24,103 8.34%
Total loans and leases (4)
13,644,072 239,566 6.99%13,351,363 237,936 7.17%13,899,034 275,771 7.87%
Other interest-earning assets118,914 1,910 6.39%110,585 3,010 10.95%134,416 2,526 7.45%
Total interest-earning assets20,694,900 332,113 6.39%20,520,284 334,038 6.54%21,485,319 376,340 6.96%
Non-interest-earning assets535,504 464,919 492,691 
Total assets $21,230,404 $20,985,203 $21,978,010 
Liabilities
Interest checking accounts$5,787,026 $65,554 4.51%$5,719,698 $64,047 4.50%$5,758,215 $58,637 4.04%
Money market deposit accounts3,676,994 42,128 4.56%3,346,718 38,167 4.59%2,181,184 22,983 4.18%
Other savings accounts1,563,970 18,426 4.69%1,810,375 21,183 4.71%1,077,298 11,582 4.27%
Certificates of deposit2,339,937 29,721 5.05%2,034,605 25,387 5.02%4,466,522 52,623 4.67%
Total interest-bearing deposits (5)
13,367,927 155,829 4.64%12,911,396 148,784 4.63%13,483,219 145,825 4.29%
Borrowings1,334,905 17,739 5.29%1,454,010 17,601 4.87%2,328,955 30,742 5.24%
Total interest-bearing liabilities14,702,832 173,568 4.70%14,365,406 166,385 4.66%15,812,174 176,567 4.43%
Non-interest-bearing deposits (5)
4,557,815 4,701,695 4,347,977 
Total deposits and borrowings19,260,647 3.59%19,067,101 3.51%20,160,151 3.48%
Other non-interest-bearing liabilities195,722 203,714 306,822 
Total liabilities 19,456,369 19,270,815 20,466,973 
Shareholders’ equity1,774,035 1,714,388 1,511,037 
Total liabilities and shareholders’ equity$21,230,404 $20,985,203 $21,978,010 
Net interest income158,545 167,653 199,773 
Tax-equivalent adjustment392 393 405 
Net interest earnings$158,937 $168,046 $200,178 
Interest spread2.80%3.03%3.48%
Net interest margin3.05%3.28%3.70%
Net interest margin tax equivalent (6)
3.06%3.29%3.70%
(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
(2) Includes owner occupied commercial real estate loans.
(3) Includes PPP loans.
(4) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.
(5) Total costs of deposits (including interest bearing and non-interest bearing) were 3.46%, 3.40% and 3.24% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
(6) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, presented to approximate interest income as a taxable asset.
19

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED (CONTINUED)
(Dollars in thousands)
Nine Months Ended
September 30, 2024September 30, 2023
Average Balance
Interest Income or ExpenseAverage Yield or Cost (%)Average BalanceInterest Income or ExpenseAverage Yield or Cost (%)
Assets
Interest earning deposits $3,471,011 $142,695 5.49%$2,100,435 $81,819 5.21%
Investment securities (1)
3,736,770 140,653 5.03%4,074,464 149,585 4.90%
Loans and leases:
Commercial & industrial:
Specialized lending loans and leases (2)
5,507,963 361,234 8.76%5,748,053 383,138 8.91%
Other commercial & industrial loans (2)(3)
1,575,815 76,487 6.48%2,081,688 105,398 6.77%
Mortgage finance loans1,151,173 45,640 5.30%1,240,403 53,934 5.81%
Multifamily loans2,100,501 63,863 4.06%2,176,294 62,857 3.86%
Non-owner occupied commercial real estate loans1,385,685 61,714 5.95%1,434,459 61,284 5.71%
Residential mortgages522,876 17,745 4.53%535,502 17,298 4.32%
Installment loans1,131,633 80,866 9.55%1,517,632 100,669 8.87%
Total loans and leases (4)
13,375,646 707,549 7.07%14,734,031 784,578 7.12%
Other interest-earning assets112,365 7,031 8.36%119,187 5,463 6.13%
Total interest-earning assets20,695,792 997,928 6.44%21,028,117 1,021,445 6.49%
Non-interest-earning assets487,991 537,160 
Total assets $21,183,783 $21,565,277 
Liabilities
Interest checking accounts$5,682,240 $191,132 4.49%$6,181,097 $178,984 3.87%
Money market deposit accounts3,419,880 117,106 4.57%2,208,853 63,444 3.84%
Other savings accounts1,708,625 61,008 4.77%966,539 27,707 3.83%
Certificates of deposit2,374,982 89,092 5.01%4,663,548 155,995 4.47%
Total interest-bearing deposits (5)
13,185,727 458,338 4.64%14,020,037 426,130 4.06%
Federal funds purchased— — —%5,055 188 4.97%
Borrowings1,431,520 53,007 4.95%2,160,332 80,184 4.96%
Total interest-bearing liabilities14,617,247 511,345 4.67%16,185,424 506,502 4.18%
Non-interest-bearing deposits (5)
4,626,580 3,642,832 
Total deposits and borrowings19,243,827 3.55%19,828,256 3.42%
Other non-interest-bearing liabilities221,278 271,387 
Total liabilities 19,465,105 20,099,643 
Shareholders’ equity1,718,678 1,465,634 
Total liabilities and shareholders’ equity$21,183,783 $21,565,277 
Net interest income486,583 514,943 
Tax-equivalent adjustment1,179 1,170 
Net interest earnings$487,762 $516,113 
Interest spread2.89%3.08%
Net interest margin3.15%3.27%
Net interest margin tax equivalent (6)
3.16%3.28%
(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
(2) Includes owner occupied commercial real estate loans.
(3) Includes PPP loans.
(4) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.
(5) Total costs of deposits (including interest bearing and non-interest bearing) were 3.44% and 3.23% for the nine months ended September 30, 2024 and 2023, respectively.
(6) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the nine months ended September 30, 2024 and 2023, presented to approximate interest income as a taxable asset.
20

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED
(Dollars in thousands)
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Loans and leases held for investment
Commercial:
Commercial & industrial:
Specialized lending$5,468,507 $5,528,745 $5,104,405 $5,006,693 $5,422,161 
Other commercial & industrial (1)
1,087,222 1,092,146 1,113,517 1,162,317 1,252,427 
Mortgage finance
1,367,617 1,122,812 1,071,146 1,014,742 1,042,549 
Multifamily2,115,978 2,067,332 2,123,675 2,138,622 2,130,213 
Commercial real estate owner occupied981,904 805,779 806,278 797,319 794,815 
Commercial real estate non-owner occupied1,326,591 1,202,606 1,182,084 1,177,650 1,178,203 
Construction174,509 163,409 185,601 166,393 252,588 
Total commercial loans and leases12,522,328 11,982,829 11,586,706 11,463,736 12,072,956 
Consumer:
Residential500,786 481,503 482,537 484,435 483,133 
Manufactured housing34,481 35,901 37,382 38,670 40,129 
Installment:
Personal453,739 474,481 492,892 555,533 629,843 
Other266,362 282,201 299,714 319,393 337,053 
Total installment loans720,101 756,682 792,606 874,926 966,896 
Total consumer loans1,255,368 1,274,086 1,312,525 1,398,031 1,490,158 
Total loans and leases held for investment$13,777,696 $13,256,915 $12,899,231 $12,861,767 $13,563,114 
Loans held for sale
Residential$2,523 $2,684 $870 $1,215 $1,005 
Installment:
Personal55,799 125,598 137,755 151,040 124,848 
Other217,098 247,442 219,015 188,062 24,515 
Total installment loans272,897 373,040 356,770 339,102 149,363 
Total loans held for sale$275,420 $375,724 $357,640 $340,317 $150,368 
Total loans and leases portfolio$14,053,116 $13,632,639 $13,256,871 $13,202,084 $13,713,482 
(1)    Includes PPP loans.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION - UNAUDITED
(Dollars in thousands)
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Demand, non-interest bearing$4,670,809 $4,474,862 $4,688,880 $4,422,494 $4,758,682 
Demand, interest bearing5,606,500 5,894,056 5,661,775 5,580,527 5,824,410 
Total demand deposits10,277,309 10,368,918 10,350,655 10,003,021 10,583,092 
Savings1,399,968 1,573,661 2,080,374 1,402,941 1,118,353 
Money market3,961,028 3,539,815 3,347,843 3,226,395 2,499,593 
Time deposits2,431,084 2,195,699 2,182,511 3,287,879 3,994,326 
Total deposits$18,069,389 $17,678,093 $17,961,383 $17,920,236 $18,195,364 

21



CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)
As of September 30, 2024As of June 30, 2024As of September 30, 2023
Loan typeTotal loansAllowance for credit lossesTotal reserves to total loansTotal loansAllowance for credit lossesTotal reserves to total loansTotal loansAllowance for credit lossesTotal reserves to total loans
Commercial:
Commercial & industrial, including specialized lending (1)
$6,672,933 $25,191 0.38 %$6,740,992 $23,721 0.35 %$6,754,571 $24,986 0.37 %
Multifamily2,115,978 18,090 0.85 %2,067,332 20,652 1.00 %2,130,213 15,870 0.74 %
Commercial real estate owner occupied981,904 10,913 1.11 %805,779 8,431 1.05 %794,815 10,363 1.30 %
Commercial real estate non-owner occupied1,326,591 17,303 1.30 %1,202,606 17,966 1.49 %1,178,203 15,819 1.34 %
Construction174,509 1,606 0.92 %163,409 1,856 1.14 %252,588 3,130 1.24 %
Total commercial loans and leases receivable11,271,915 73,103 0.65 %10,980,118 72,626 0.66 %11,110,390 70,168 0.63 %
Consumer:
Residential500,786 5,838 1.17 %481,503 5,884 1.22 %483,133 6,802 1.41 %
Manufactured housing34,481 4,080 11.83 %35,901 4,094 11.40 %40,129 4,080 10.17 %
Installment720,101 50,137 6.96 %756,682 49,832 6.59 %966,896 58,163 6.02 %
Total consumer loans receivable1,255,368 60,055 4.78 %1,274,086 59,810 4.69 %1,490,158 69,045 4.63 %
Loans and leases receivable held for investment
12,527,283 133,158 1.06 %12,254,204 132,436 1.08 %12,600,548 139,213 1.10 %
Loans receivable, mortgage finance, at fair value1,250,413 — — %1,002,711 — — %962,566 — — %
Loans held for sale275,420 — — %375,724 — — %150,368 — — %
Total loans and leases portfolio$14,053,116 $133,158 0.95 %$13,632,639 $132,436 0.97 %$13,713,482 $139,213 1.02 %
(1)    Includes PPP loans.
22


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)
As of September 30, 2024As of June 30, 2024As of September 30, 2023
Loan typeNon accrual /NPLsTotal NPLs to total loansTotal reserves to total NPLsNon accrual /NPLsTotal NPLs to total loansTotal reserves to total NPLsNon accrual /NPLsTotal NPLs to total loansTotal reserves to total NPLs
Commercial:
Commercial & industrial, including specialized lending (1)
$4,615 0.07 %545.85 %$5,488 0.08 %432.23 %$5,767 0.09 %433.26 %
Multifamily11,834 0.56 %152.86 %14,002 0.68 %147.49 %— — %— %
Commercial real estate owner occupied8,613 0.88 %126.70 %9,612 1.19 %87.71 %7,442 0.94 %139.25 %
Commercial real estate non-owner occupied763 0.06 %2267.76 %62 0.01 %28977.42 %— — %— %
Construction— — %— %— — %— %— — %— %
Total commercial loans and leases receivable25,825 0.23 %283.07 %29,164 0.27 %249.03 %13,209 0.12 %531.21 %
Consumer:
Residential7,997 1.60 %73.00 %8,179 1.70 %71.94 %6,559 1.36 %103.70 %
Manufactured housing1,869 5.42 %218.30 %2,047 5.70 %200.00 %2,582 6.43 %158.02 %
Installment6,328 0.88 %792.30 %5,614 0.74 %887.64 %7,299 0.75 %796.86 %
Total consumer loans receivable16,194 1.29 %370.85 %15,840 1.24 %377.59 %16,440 1.10 %419.98 %
Loans and leases receivable42,019 0.34 %316.90 %45,004 0.37 %294.28 %29,649 0.24 %469.54 %
Loans receivable, mortgage finance, at fair value— — %— %— — %— %— — %— %
Loans held for sale5,307 1.93 %— %2,376 0.63 %— %218 0.14 %— %
Total loans and leases portfolio$47,326 0.34 %281.36 %$47,380 0.35 %279.52 %$29,867 0.22 %466.11 %
(1)    Includes PPP loans.
23


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED
(Dollars in thousands)
Q3Q2Q1Q4Q3Nine Months Ended September 30,
2024
2024
2024
2023
2023
20242023
Loan type
Commercial & industrial, including specialized lending$5,056 $5,665 $3,672 $5,282 $2,974 $14,393 $3,161 
Multifamily2,167 1,433 473 127 1,999 4,073 3,447 
Commercial real estate owner occupied4 — 22 — 39 26 5 
Commercial real estate non-owner occupied— — — (288)— — 4,500 
Construction(3)(7)— — — (10)(116)
Residential(21)(20)18 (1)13 (23)35 
Installment9,841 11,640 13,783 12,202 12,473 35,264 40,681 
Total net charge-offs (recoveries) from loans held for investment$17,044 $18,711 $17,968 $17,322 $17,498 $53,723 $51,713 
24


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

Core Earnings and Adjusted Core Earnings - Customers Bancorp
Nine Months Ended
September 30,
Q3 2024Q2 2024Q1 2024Q4 2023Q3 202320242023
(Dollars in thousands, except per share data)
USD
Per share
USD
Per share
USD
Per share
USD
Per share
USD
Per share
USD
Per share
USD
Per share
GAAP net income to common shareholders$42,937 $1.31 $54,300 $1.66 $45,926 $1.40 $58,223 $1.79 $82,953 $2.58 $143,163 $4.37 $177,225 $5.53 
Reconciling items (after tax):
Severance expense540 0.02 1,928 0.06 — — 473 0.01 — — 2,468 0.08 778 0.02 
Impairments on fixed assets and leases— — — — — — — — — — — — 98 0.00 
Loss on sale of capital call lines of credit— — — — — — — — — — — — 3,914 0.12 
(Gains) losses on investment securities(322)(0.01)561 0.02 57 0.00 (85)0.00 492 0.02 296 0.01 492 0.02 
Derivative credit valuation adjustment185 0.01 (44)0.00 169 0.01 267 0.01 (151)0.00 310 0.01 (48)0.00 
Tax on surrender of bank-owned life insurance policies— — — — — — — — — — — — 4,141 0.13 
FDIC special assessment— — 138 0.00 380 0.01 2,755 0.08 — — 518 0.02 — — 
Unrealized (gain) on equity method investments— — (8,316)(0.25)— — — — — — (8,316)(0.25)— — 
Unrealized losses on loans held for sale498 0.02 — — — — — — — — 498 0.02 — — 
Core earnings$43,838 $1.34 $48,567 $1.49 $46,532 $1.42 $61,633 $1.90 $83,294 $2.59 $138,937 $4.24 $186,600 $5.82 
One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024— — — — 5,405 0.16 — — — — 5,405 0.16 — — 
FDIC premiums prior to 2024— — — — 3,200 0.10 — — — — 3,200 0.10 — — 
Non-income taxes prior to 2024(2,457)(0.07)— — — — — — — — (2,457)(0.07)— — 
Total one-time non-interest expense items(2,457)(0.07)— — 8,605 0.26 — — — — 6,148 0.19 — — 
Adjusted core earnings (adjusted for one-time non-interest expense items)$41,381 $1.26 $48,567 $1.49 $55,137 $1.68 $61,633 $1.90 $83,294 $2.59 $145,085 $4.43 $186,600 $5.82 



25


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)

Core Return on Average Assets and Adjusted Core Return on Average Assets - Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands, except per share data)Q3 2024Q2 2024Q1 2024Q4 2023Q3 202320242023
GAAP net income$46,743 $58,085 $49,726 $62,092 $86,756 $154,554 $188,051 
Reconciling items (after tax):
Severance expense540 1,928 — 473 — 2,468 778 
Impairments on fixed assets and leases— — — — — — 98 
Loss on sale of capital call lines of credit— — — — — — 3,914 
(Gains) losses on investment securities(322)561 57 (85)492 296 492 
Derivative credit valuation adjustment185 (44)169 267 (151)310 (48)
Tax on surrender of bank-owned life insurance policies— — — — — — 4,141 
FDIC special assessment— 138 380 2,755 — 518 — 
Unrealized (gain) on equity method investments— (8,316)— — — (8,316)— 
Unrealized losses on loans held for sale498 — — — — 498 — 
Core net income
$47,644 $52,352 $50,332 $65,502 $87,097 $150,328 $197,426 
One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024— — 5,405 — — 5,405 — 
FDIC premiums prior to 2024— — 3,200 — — 3,200 — 
Non-income taxes prior to 2024(2,457)— — — — (2,457)— 
Total one-time non-interest expense items(2,457)— 8,605 — — 6,148 — 
Adjusted core net income (adjusted for one-time non-interest expense items)
$45,187 $52,352 $58,937 $65,502 $87,097 $156,476 $197,426 
Average total assets
$21,230,404 $20,985,203 $21,335,229 $21,252,273 $21,978,010 $21,183,783 $21,565,277 
Core return on average assets0.89 %1.00 %0.95 %1.22 %1.57 %0.95 %1.22 %
Adjusted core return on average assets (adjusted for one-time non-interest expense items)
0.85 %1.00 %1.11 %1.22 %1.57 %0.99 %1.22 %





26


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)

Core Pre-Tax Pre-Provision Net Income and ROAA and Adjusted Core Pre-Tax Pre-Provision Net Income and ROAA - Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands, except per share data)Q3 2024Q2 2024Q1 2024Q4 2023Q3 202320242023
GAAP net income$46,743 $58,085 $49,726 $62,092 $86,756 $154,554 $188,051 
Reconciling items:
Income tax expense (benefit)
(725)19,032 15,651 21,796 23,470 33,958 58,801 
Provision (benefit) for credit losses
17,066 18,121 17,070 13,523 17,856 52,257 61,088 
Provision (benefit) for credit losses on unfunded commitments642 1,594 430 (136)48 2,666 24 
Severance expense659 2,560 — 639 — 3,219 991 
Impairments on fixed assets and leases— — — — — — 124 
Loss on sale of capital call lines of credit— — — — — — 5,037 
(Gains) losses on investment securities(394)744 75 (114)626 425 626 
Derivative credit valuation adjustment226 (58)222 361 (192)390 (63)
FDIC special assessment— 183 500 3,723 — 683 — 
Unrealized (gain) on equity method investments— (11,041)— — — (11,041)— 
Unrealized losses on loans held for sale607 — — — — 607 — 
Core pre-tax pre-provision net income
$64,824 $89,220 $83,674 $101,884 $128,564 $237,718 $314,679 
One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024— — 7,106 — — 7,106 — 
FDIC premiums prior to 2024— — 4,208 — — 4,208 — 
Non-income taxes prior to 2024(2,997)— — — — (2,997)— 
Total one-time non-interest expense items(2,997)— 11,314 — — 8,317 — 
Adjusted core pre-tax pre-provision net income (adjusted for one-time non-interest expense items)
$61,827 $89,220 $94,988 $101,884 $128,564 $246,035 $314,679 
Average total assets
$21,230,404 $20,985,203 $21,335,229 $21,252,273 $21,978,010 $21,183,783 $21,565,277 
Core pre-tax pre-provision ROAA
1.21 %1.71 %1.58 %1.90 %2.32 %1.50 %1.95 %
Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items)
1.16 %1.71 %1.79 %1.90 %2.32 %1.55 %1.95 %
27


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)
Core Return on Average Common Equity and Adjusted Core Return on Average Common Equity - Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands, except per share data)Q3 2024Q2 2024Q1 2024Q4 2023Q3 202320242023
GAAP net income to common shareholders$42,937 $54,300 $45,926 $58,223 $82,953 $143,163 $177,225 
Reconciling items (after tax):
Severance expense540 1,928 — 473 — 2,468 778 
Impairments on fixed assets and leases— — — — — — 98 
Loss on sale of capital call lines of credit— — — — — — 3,914 
(Gains) losses on investment securities(322)561 57 (85)492 296 492 
Derivative credit valuation adjustment185 (44)169 267 (151)310 (48)
Tax on surrender of bank-owned life insurance policies— — — — — — 4,141 
FDIC special assessment— 138 380 2,755 — 518 — 
Unrealized (gain) on equity method investments— (8,316)— — — (8,316)— 
Unrealized losses on loans held for sale498 — — — — 498 — 
Core earnings$43,838 $48,567 $46,532 $61,633 $83,294 $138,937 $186,600 
One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024— — 5,405 — — 5,405 — 
FDIC premiums prior to 2024— — 3,200 — — 3,200 — 
Non-income taxes prior to 2024(2,457)— — — — (2,457)— 
Total one-time non-interest expense items(2,457)— 8,605 — — 6,148 — 
Adjusted core earnings (adjusted for one-time non-interest expense items)
$41,381 $48,567 $55,137 $61,633 $83,294 $145,085 $186,600 
Average total common shareholders’ equity
$1,636,242 $1,576,595 $1,529,211 $1,449,728 $1,373,244 $1,580,885 $1,327,841 
Core return on average common equity10.66 %12.39 %12.24 %16.87 %24.06 %11.74 %18.79 %
Adjusted core return on average common equity (adjusted for one-time non-interest expense items)
10.06 %12.39 %14.50 %16.87 %24.06 %12.26 %18.79 %




28


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)

Core Pre-Tax Pre-Provision ROCE and Adjusted Core Pre-Tax Pre-Provision ROCE - Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands, except per share data)Q3 2024Q2 2024Q1 2024Q4 2023Q3 202320242023
GAAP net income to common shareholders$42,937 $54,300 $45,926 $58,223 $82,953 $143,163 $177,225 
Reconciling items:
Income tax expense (benefit)
(725)19,032 15,651 21,796 23,470 33,958 58,801 
Provision (benefit) for credit losses
17,066 18,121 17,070 13,523 17,856 52,257 61,088 
Provision (benefit) for credit losses on unfunded commitments642 1,594 430 (136)48 2,666 24 
Severance expense659 2,560 — 639 — 3,219 991 
Impairments on fixed assets and leases— — — — — — 124 
Loss on sale of capital call lines of credit— — — — — — 5,037 
(Gains) losses on investment securities(394)744 75 (114)626 425 626 
Derivative credit valuation adjustment226 (58)222 361 (192)390 (63)
FDIC special assessment— 183 500 3,723 — 683 — 
Unrealized (gain) on equity method investments— (11,041)— — — (11,041)— 
Unrealized losses on loans held for sale607 — — — — 607 — 
Core pre-tax pre-provision net income available to common shareholders
$61,018 $85,435 $79,874 $98,015 $124,761 $226,327 $303,853 
One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024— — 7,106 — — 7,106 — 
FDIC premiums prior to 2024— — 4,208 — — 4,208 — 
Non-income taxes prior to 2024(2,997)— — — — (2,997)— 
Total one-time non-interest expense items(2,997)— 11,314 — — 8,317 — 
Adjusted core pre-tax pre-provision net income available to common shareholders
$58,021 $85,435 $91,188 $98,015 $124,761 $234,644 $303,853 
Average total common shareholders’ equity
$1,636,242 $1,576,595 $1,529,211 $1,449,728 $1,373,244 $1,580,885 $1,327,841 
Core pre-tax pre-provision ROCE
14.84 %21.79 %21.01 %26.82 %36.04 %19.12 %30.59 %
Adjusted core pre-tax pre-provision ROCE (adjusted for one-time non-interest expense items)
14.11 %21.79 %23.98 %26.82 %36.04 %19.83 %30.59 %
29


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)
Core Efficiency Ratio and Adjusted Core Efficiency Ratio - Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands, except per share data)Q3 2024Q2 2024Q1 2024Q4 2023Q3 202320242023
GAAP net interest income$158,545 $167,653 $160,385 $172,506 $199,773 $486,583 $514,943 
GAAP non-interest income$8,557 $31,037 $21,231 $18,672 $17,775 $60,825 $51,893 
Loss on sale of capital call lines of credit— — — — — — 5,037 
(Gains) losses on investment securities(394)744 75 (114)626 425 626 
Derivative credit valuation adjustment226 (58)222 361 (192)390 (63)
Unrealized (gain) on equity method investments— (11,041)— — — (11,041)— 
Unrealized losses on loans held for sale607 — — — — 607 — 
Core non-interest income8,996 20,682 21,528 18,919 18,209 51,206 57,493 
Core revenue$167,541 $188,335 $181,913 $191,425 $217,982 $537,789 $572,436 
GAAP non-interest expense$104,018 $103,452 $99,169 $93,767 $89,466 $306,639 $258,896 
Severance expense(659)(2,560)— (639)— (3,219)(991)
Impairments on fixed assets and leases— — — — — — (124)
FDIC special assessment— (183)(500)(3,723)— (683)— 
Core non-interest expense$103,359 $100,709 $98,669 $89,405 $89,466 $302,737 $257,781 
One-time non-interest expense items recorded in 2024:
Deposit servicing fees prior to 2024
— — (7,106)— — (7,106)— 
FDIC premiums prior to 2024
— — (4,208)— — (4,208)— 
Non-income taxes prior to 2024
2,997 — — — — 2,997 — 
Total one-time non-interest expense items
2,997 — (11,314)— — (8,317)— 
Adjusted core non-interest expense
$106,356 $100,709 $87,355 $89,405 $89,466 $294,420 $257,781 
Core efficiency ratio (1)
61.69 %53.47 %54.24 %46.70 %41.04 %56.29 %45.03 %
Adjusted core efficiency ratio (adjusted for one-time non-interest expense items) (2)
63.48 %53.47 %48.02 %46.70 %41.04 %54.75 %45.03 %
(1) Core efficiency ratio calculated as core non-interest expense divided by core revenue.
(2) Adjusted core efficiency ratio calculated as adjusted core non-interest expense divided by core revenue.



30


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)

Core Non-Interest Expense to Average Total Assets and Adjusted Core Non-Interest Expense to Average Total Assets- Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands, except per share data)Q3 2024Q2 2024Q1 2024Q4 2023Q3 202320242023
GAAP non-interest expense$104,018 $103,452 $99,169 $93,767 $89,466 $306,639 $258,896 
Severance expense(659)(2,560)— (639)— (3,219)(991)
Impairments on fixed assets and leases— — — — — — (124)
FDIC special assessment— (183)(500)(3,723)— (683)— 
Core non-interest expense$103,359 $100,709 $98,669 $89,405 $89,466 $302,737 $257,781 
One-time non-interest expense items recorded in 2024:
Deposit servicing fees prior to 2024— — (7,106)— — (7,106)— 
FDIC premiums prior to 2024— — (4,208)— — (4,208)— 
Non-income taxes prior to 20242,997 — — — — 2,997 — 
Total one-time non-interest expense items2,997 — (11,314)— — (8,317)— 
Adjusted core non-interest expense
$106,356 $100,709 $87,355 $89,405 $89,466 $294,420 $257,781 
Average total assets
$21,230,404 $20,985,203 $21,335,229 $21,252,273 $21,978,010 $21,183,783 $21,565,277 
Core non-interest expense to average total assets
1.94 %1.93 %1.86 %1.67 %1.62 %1.91 %1.60 %
Adjusted core non-interest expense to average total assets (adjusted for one-time non-interest expense items)
1.99 %1.93 %1.65 %1.67 %1.62 %1.86 %1.60 %


Business Unit Deposits (formerly, Core Deposits, Total Deposits, excluding Wholesale CDs and BMTX student deposits) - Customers Bancorp
(Dollars in thousands, except per share data)Q3 2024Q2 2024Q1 2024Q4 2023Q3 2023
Total deposits$18,069,389 $17,678,093 $17,961,383 $17,920,236 $18,195,364 
Reconciling items:
Wholesale CDs1,585,081 1,545,885 1,809,573 2,970,615 3,713,933 
BMTX student deposits— — 850 1,157 636,951 
Business Unit Deposits (formerly, Core Deposits, Total deposits, excluding wholesale CDs and BMTX student deposits)
$16,484,308 $16,132,208 $16,150,960 $14,948,464 $13,844,480 


Tangible Common Equity to Tangible Assets - Customers Bancorp
(Dollars in thousands, except per share data)Q3 2024Q2 2024Q1 2024Q4 2023Q3 2023
GAAP total shareholders’ equity
$1,801,180 $1,746,865 $1,691,617 $1,638,394 $1,561,607 
Reconciling items:
   Preferred stock(137,794)(137,794)(137,794)(137,794)(137,794)
   Goodwill and other intangibles(3,629)(3,629)(3,629)(3,629)(3,629)
Tangible common equity$1,659,757 $1,605,442 $1,550,194 $1,496,971 $1,420,184 
GAAP total assets$21,456,082 $20,942,975 $21,347,367 $21,316,265 $21,857,152 
Reconciling items:
Goodwill and other intangibles(3,629)(3,629)(3,629)(3,629)(3,629)
Tangible assets$21,452,453 $20,939,346 $21,343,738 $21,312,636 $21,853,523 
Tangible common equity to tangible assets7.7 %7.7 %7.3 %7.0 %6.5 %



31


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)

Tangible Book Value per Common Share - Customers Bancorp
(Dollars in thousands, except share and per share data)Q3 2024Q2 2024Q1 2024Q4 2023Q3 2023
GAAP total shareholders’ equity
$1,801,180 $1,746,865 $1,691,617 $1,638,394 $1,561,607 
Reconciling Items:
   Preferred stock(137,794)(137,794)(137,794)(137,794)(137,794)
   Goodwill and other intangibles(3,629)(3,629)(3,629)(3,629)(3,629)
Tangible common equity$1,659,757 $1,605,442 $1,550,194 $1,496,971 $1,420,184 
Common shares outstanding31,342,107 31,667,655 31,521,931 31,440,906 31,311,254 
Tangible book value per common share$52.96 $50.70 $49.18 $47.61 $45.36 
32

Let’s take on tomorrow. Investor Presentation: Q3 2024 October 2024

 
2 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Customers Bancorp, Inc.’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “project,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.’s control). Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause Customers Bancorp, Inc.’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements, including: a continuation of the recent turmoil in the banking industry, responsive measures taken by us and regulatory authorities to mitigate and manage related risks, regulatory actions taken that address related issues and the costs and obligations associated therewith, such as the FDIC special assessments; the potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to our reputation; effects of competition on deposit rates and growth, loan rates and growth and net interest margin; failure to identify and adequately and promptly address cybersecurity risks, including data breaches and cyberattacks; public health crises and pandemics and their effects on the economic and business environments in which we operate; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the war between Russia and Ukraine and escalating conflict in the Middle East, which could impact economic conditions in the United States; the impact that changes in the economy have on the performance of our loan and lease portfolio, the market value of our investment securities, the demand for our products and services and the availability of sources of funding; the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that affect market interest rates and the money supply; actions that we and our customers take in response to these developments and the effects such actions have on our operations, products, services and customer relationships; higher inflation and its impacts; and the effects of any changes in accounting standards or policies. Customers Bancorp, Inc. cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Customers Bancorp, Inc.’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K for the year ended December 31, 2023, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, including any amendments thereto, that update or provide information in addition to the information included in the Form 10-K and Form 10- Q filings, if any. Customers Bancorp, Inc. does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Customers Bancorp, Inc. or by or on behalf of Customers Bank, except as may be required under applicable law. Forward-Looking Statements

 
3 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Key Highlights 1. Non-GAAP measure, refer to appendix for reconciliation 2. Selected 2024 proxy peers as disclosed in appendix 3. FY 2018 to FY 2023 4. Uninsured deposits (estimate) of $6.1 billion to be reported on the Bank’s call report, less deposits of $1.4 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $136.5 million. Let’s take on tomorrow. Bucking the industry trend with 16% annualized loan growth Robust growth from diversified products across the franchise Net interest income and net interest margin impacted by accretion & prepayments and proactive asset remix Positive business drivers for expansion in the medium-term $1.1 billion of deposit inflows from commercial clients used to paydown $0.7 billion of less strategic deposits Strong momentum continuing into phase II of deposit transformation strategy Robust Loan GrowthAccretive Deposit Remix Net Interest Income & Net Interest Margin (NIM) Core non-interest expense as percent of average assets is top quartile among regional bank peers2 Strategic investments made to enhance talent, technology and risk management Operational Excellence & Strategic Investments CET1 and TCE/TA remain in excess of our targets of ~11.5% and ~7.5% respectively Repurchased 374k shares in the quarter below tangible book value Immediately available liquidity of approximately 183% of uninsured deposits4 NPA ratio remains at low level of 22 bps Net charge-off and special mention and substandard levels declined Tangible book value per share1 approaching $53 with increase of $2.26 in the quarter 15% CAGR over last five years3 Strong Capital & Liquidity Tangible Book Value Growth Maintaining Superior Credit Quality

 
4 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Let’s take on tomorrow. Our Priorities Remain Unchanged Selectively pursue disciplined growth by focusing on holistic and strategic relationships that create franchise value Focus on further strengthening our balance sheet, improving liquidity, capital ratios and margins Not deviate from strong risk management principles: − Superior credit quality − Sound interest rate risk management − Maintain robust liquidity − Strong capital ratios − Positive operating leverage

 
5 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. What Makes Customers Bank Unique? CULTURE High-Touch and Branch-Lite Model Single Point of Contact Consistent Recruiter of Top Talent Sufficient Scale, Yet Nimble Client Centric Focus Sophisticated Product Offerings Target Top 3-5 National Competitor in Focused Set of Verticals Entrepreneurial Culture Banking Entrepreneurs FOCUS STRATEGY Ranked #1 among banks with $10 billion to $50 billion in assets

 
6 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Q3’24 (vs. Q2’24) Profitability Balance Sheet Credit 3.06% vs. 3.29% NIM $21.5B +2% Total Assets 0.22% -01 bps NPA Ratio $14.1B +3% Total Loans and Leases $47.3M +0% NPLs Financial Highlights Highlights Q3’24 Q3’24 EARNINGS REVIEW Total Deposits $18.1B +2% Reserves to NPLs 281% vs. 280% $1.34 Core EPS1,2 $43.8 M Core Earnings1,2 Core ROCE1,2 10.7% $1.31 Diluted EPS $42.9 M Net Income ROCE 10.4% ROAA 0.88% Core ROAA1,2 0.89% vs. 1.00%vs. 1.11% 1. Excludes pre-tax severance expense of $0.7 million, unrealized losses on loans held for sale of $0.6 million, gain on investment securities of $0.4 million and derivative credit valuation adjustment of $0.2 million. 2. Non-GAAP measure, refer to appendix for reconciliation Core PTPP ROAA1,2 1.21% vs. 1.71%

 
7 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Total Deposits $ billions Continued Execution of Deposit Franchise Transformation Gross deposit inflows from commercial clients2 Average cost of deposits 3.46% ACCRETIVE DEPOSIT REMIX 3.40% $4.8 $5.8 $7.6 $4.4 $5.6 $7.9 $4.7 $5.7 $7.6 $4.5 (25%) $5.9 $7.3 $4.7 (26%) $5.6 $7.8 $18.2 $17.9 $18.0 $17.7 $18.1 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Non-Interest Bearing DDA Interest Bearing DDA Non-DDA Q3’24 Deposit Flows Paydown of commercial & consumer client deposits 11,092 12,568 13,595 13,769 15,383 19,152 10,000 20,000 2019 2020 2021 2022 2023 Q3’24 +39% Commercial Client Deposit Accounts $1.1B $0.4B -$0.7B Net deposit growth New Banking Team Deposits1 $ millions 680 860 169 536 Q1’23 Q1’24 Q2’24 Q3’24 $95 $635 $850 $1,396 +$1,301 Venture Banking Commercial Banking Teams 1. Includes venture banking team hired in Q2’23 and commercial banking teams hired in Q2’24 2. Deposit inflows in Q3’24 less strategic remix +$546

 
8 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Venture Banking: Team Lift-Out Strategy Driving Franchise Value ACCRETIVE DEPOSIT REMIX • Top 3 competitor in venture banking ecosystem • Highly attractive funding channel • Peak balances of $2+ billion in deposits at prior institution Loans: Deposits: Deposits to Loans: $2B+ $1B+ ~2:1+ Q1’22-Q1’23 Q2’23-Q3’24 • Expansion into Venture Banking market • Primarily focused on late- stage and growth portfolio companies • Top 5 competitor in venture banking ecosystem • Significantly increased size of team, portfolio and geographic coverage • Expanded coverage to early- stage portfolio companies Loans: Deposits: Deposits to Loans: $95M $538M ~1:6 Loans: Deposits: Deposits to Loans: $860M $871M ~1:1 Q4’21 Q4’23 Q4’24Q4’22 Q4’25 Q4’24+

 
9 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Commercial Banking: Team Hires On-Track for Continued Success ACCRETIVE DEPOSIT REMIX 30 Apr 31 May 30 Jun 31 Jul 31 Aug 30 Sep 183 537 1,140 1,607 2,723 3,138 Funded Accounts > $50K Accounts < $50K Key Highlights • $2.0+ billion deposit pipeline • Deposit growth of ~$370 million in Q3’24 • Overall cost of deposits of ~2.9% with ~30% non-interest bearing • On track to breakeven by Q1'25 2.8x • 10 highly experienced commercial banking teams • Granular and holistic banking relationships • Peak balances of $10+ billion in deposits at prior institution Loans: Deposits: Deposits to Loans: $536M $180M ~3:1 Deposits to Loans: Loans: Deposits: $2B+ $500M+ Number of Accounts Q2’24-Q3’24 Q1’24 Q4’25Q3’24 ~4:1 Q4’24+

 
10 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Industry Leading Loan Growth of 16% With Contributions Across The Franchise Loans - HFI $ billions $1.0 $5.8 $6.8 Q3’23 $0.9 $5.7 $6.3 Q4’23 $0.8 $5.6 $6.5 Q1’24 $0.8 $5.5 $7.0 Q2’24 $0.7 $5.7 $7.4 Q3’24 $13.6 $12.9 $12.9 $13.3 $13.8 7.87% 7.30% 7.05% 7.17% 6.99% Yield on Loans • Added 175+ new lending relationships • Strong pipelines creating continued opportunity for growth with holistic relationships ROBUST LOAN GROWTH • Total HFI loan growth of $521 million • Top growth verticals included mortgage finance, commercial banking team C&I, CRE1 and equipment finance • Mortgage finance business well-positioned to capitalize on opportunity from lower rates • Market disruption creating unique opportunity to selectively acquire new CRE1 customers with significant deposit balances ‒ CRE1 loans increased by $184 million in Q3 ‒ Growth fully funded by CRE1 vertical-related deposits Loans – HFI Growth QoQ $ billions Corporate & Specialized Banking Community Banking Consumer Installment $346 $212 -$37 Corporate & Specialized Banking Community Banking Consumer Installment HFI 1. Includes multifamily, NOO CRE and construction loans

 
11 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Net Interest Margin in Q3’24 Impacted by Several Items from Q2’24 Net Interest Income $ millions Net Interest Margin (%) 3.06%3.29% Q2’24 Q3’24 $334.0 $332.1 Q2’24 Q3’24 $166.4 $173.6 Q2’24 Q3’24 $167.7 $158.5 Interest Income $ millions Interest Expense $ millions NET INTEREST INCOME & NET INTEREST MARGIN • Over 80% of the reduction in net interest margin in the quarter driven by: − Lower discount accretion and prepayment income − Lower average consumer installment balances and securities repositioning • $2.0+ billion high quality deposit pipeline driving opportunity to remix higher cost deposits and reduce interest expense • Strategic hedging executed in Q2’24 expected to positively impact NII and NIM in 2025 Net Interest Margin 3.29% 3.06% Q2’24 -0.12% Accretion & prepayments -0.07% Proactive asset remix1 -0.04% All other Q3’24 percent 1. Lower average consumer installment balances and securities repositioning

 
12 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. c Meaningful Positive NII and NIM Drivers Going Forward NET INTEREST INCOME & NET INTEREST MARGIN Estimated Net Interest Income Drivers1 Time deposit maturities of $680 million repriced lower by 100-200 bps $1.5-2.5 billion deposit remix repriced lower by 200-250 bps Back book fixed rate loan repricing of $240 million by 100-200 bps Franchise enhancing loan originations Strategic Reduction in Asset Sensitivity in 2024 $30-$62 $7-$14 $6-$8 $2-$5 + ~$45-$90+ $ millions Net interest income upside 1. FY’25 2. Compared to annualized Q3’24 net interest income 7-13%2 Hedging benefit

 
13 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Industry-Leading Efficiency $89 $89 $99 $101 $103 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Core Non-Interest Expense1 $ millions • ~$3 million increase2 in core non-interest expense incurred in Q3’24 from higher compensation and outside services • Outside services expected to be elevated over the next two quarters • Revenues from new banking teams expected to exceed expenses within 12 months of onboarding Core Non-Interest Expense1 / Average Assets percent • CUBI’s core non-interest expense1 as percent of average assets is top quartile among regional bank peers3 1.94% C U BI CUBI (Q3’24) Regional Bank Peers2 (MRQ) 1. Non-GAAP measure, refer to appendix for reconciliation 2. Compared to Q2 2024 core non-interest expense; non-GAAP measure, refer to appendix for reconciliation 3. Selected 2024 proxy peers as disclosed in appendix Top Quartile (1.97%) Median (2.09%) OPERATIONAL EFFICIENCY AND STRATEGIC INVESTMENTS

 
14 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. c OPERATIONAL EFFICIENCY AND STRATEGIC INVESTMENTS $20+ Million Expense initiatives • Technology platform consolidation • IT application rationalization • Strategic realignment • Sign-on guarantee sunsetEx pe ns es Fe es Treasury management fee income from clients using instant payments and other products Total Annual Opportunity 2025 Operational Excellence Initiative Target of $20+ Million Annually Savings Used to Invest in the Franchise

 
15 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Tangible Book Value1 per share Tangible Book Value Approaching $53 Per Share 1. Non-GAAP measure, refer to appendix for reconciliation 2. CAGR from Q4’18 to Q3’24 inclusive of impact of AOCI mark-to-market 3. CAGR from FY’18 to FY’23 4. Selected 2024 proxy peers as disclosed in appendix AOCI $23.32 $26.17 $27.92 $37.21 $38.97 $47.61 2018 2019 2020 2021 2022 2023 Q3’24 $52.96 TANGIBLE BOOK VALUE GROWTH $3.38 $56.34 15%2 • Tangible book value1 increased by $2.26 in Q3’24 (18% annualized) • Tangible book value1 has more than doubled over the last five years3 • 5-year+ CAGR in TBV1 of 15%2 despite AOCI headwinds compared to 5% for regional bank peers4

 
16 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. ` ` 14.3% 15.3% 15.9% 15.8% 15.4% +110 bps Total Risk-Based Capital percent 7. 7% 6.5% 7.0% 7.3% 7.7% +120 bps TCE/TA2,3 percent 1. Capital ratios are estimated pending final regulatory report 2. TCE/TA negatively impacted by 49 bps in Q3’24 due to AOCI 3. Non-GAAP measure, refer to appendix for reconciliation 4. Tangible book value as of Q3’24 Strong Capital Levels Provide Significant Flexibility AOCI 11.3% 12.2% 12.6% 12.8% 12.5% CET1 Risk-Based Capital percent STRONG CAPITAL AND LIQUIDITY • TCE/TA3 up over 120 bps YoY and stable QoQ inclusive of share repurchase and balance sheet growth • Share repurchase of 374k shares at an average price below tangible book value3,4 • After growing CET1 for five quarters, utilized approximately 30 bps of capital for attractive strategic loan growth Q3’23 Q4’23 Q1’24 Q2’24 Q3’241 7.5%+ 11.5%+ 8.2%

 
17 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Robust Liquidity Position with Approximately 183% Coverage of Uninsured Deposits Immediately Available Liquidity $ billions $3.0 $1.0 $4.3 Q2’24 $3.1 $1.0 $4.2 Q3’24 $8.3 $8.3 Cash FHLB Available Committed Capacity FRB Available Committed Capacity 1. Uninsured deposits (estimate) of $6.1 billion to be reported on the Bank’s call report, less deposits of $1.4 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $136.5 million 2. Selected 2024 proxy peers as disclosed in appendix STRONG CAPITAL AND LIQUIDITY • Immediately available liquidity to uninsured deposits1 of 183% • Total overall liquidity of ~$10.0 billion as of Q3’24 Loans-HFI to Deposits Q3’24, percent CUBI Regional Bank Peers2 76% 88% Borrowings % of Total Liabilities Q3’24, percent CUBI Regional Bank Peers2 7% 7%

 
18 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Commercial NCOs percent 0.14% 0.13% 0.17% 0.23% 0.22% NPAs % of Total Assets percent Credit Metrics Remain Stable 0.17% 0.14% 0.25% 0.24%0.16%2 2.96% 2.81% 3.26% 2.74% 2.51% 0.50% 0.51% 0.55% 0.56% 0.50% Consumer NCOs percent Total NCOs percent MAINTAINING SUPERIOR CREDIT QUALITY v Q3’23 Q4’23 Q1’23 Q2’24 Q3’24 NPAs % of Total Assets Q3’24, percent CUBI Regional Bank Peers1 0.22% 0.36% 1. Selected 2024 proxy peers as disclosed in appendix 2. As of Q3’24; Excludes owner occupied CRE; 33% total CRE including owner occupied CRE 3. As of Q2’24; Selected 2024 proxy peers as disclosed in appendix 15% 10% 33%1% 8% CUBI2 Regional Bank Peers3 26% 47% Construction Commercial Real Estate Multifamily CRE % of Loans-HFI percent v • NPA ratio down 1 bp QoQ • Special mention and substandard loans declined by 10% QoQ and 30-89 delinquency loans declined 17% QoQ • Total NCOs declined by 9% QoQ 6%

 
19 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Concluding Perspectives Let’s take on tomorrow. 16% annualized loan growth contrasting with industry trends Robust pipeline to continue to originate franchise enhancing loan growth New banking teams1 have remixed nearly 10% of deposit franchise $536 million of deposits and more than 3,000 accounts from commercial banking teams in less than two quarters Transforming the deposit franchise by improving the cost and quality of deposits Tangible book value per share1 grew 18% annualized and approaching $53 in the quarter 15% CAGR over last five years – 2x the performance of top quartile banks2 and sustainable going forward Net interest margin expected to increase in medium-term Net interest income expansion opportunities on both sides of the balance sheet Robust Loan GrowthDeposit Franchise Transformation Tangible Book Value GrowthNet Interest Income / Net Interest Margin 1. Includes venture banking team hired in Q2’23 and commercial banking teams hired in Q2’24 2. US banks with $10 billion to $100 billion in assets. CAGR from FY’18-FY’23

 
ANALYST COVERAGE D.A. Davidson Companies Peter Winter Hovde Group David Bishop Keefe, Bruyette & Woods Inc. Kelly Motta Maxim Group LLC Michael Diana Piper Sandler Companies Frank Schiraldi Stephens Inc. Matt Breese Wedbush Securities Inc. David Chiaverini Raymond James Steve Moss B. Riley Securities, Inc. Hal Goetsch 2024 New Analyst

 
APPENDIX

 
22 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Customers Bancorp, Inc. NYSE: CUBI Headquarters West Reading, PA Offices1 41 FTE Employees 812 Market Capitalization As of October 25, 2024 $1.4B Total Assets $21.5B Tangible Book Value2 $52.96 Share price As of October 25, 2024 $44.47 Data as of September 30, 2024, unless otherwise noted (1) Offices includes branches, executive offices, Private Banking Offices and Loan Production Offices (2) Non-GAAP measure, refer to appendix for reconciliation Customers Bancorp Company Overview Community Banking Corporate & Specialized Banking Providence Dallas Raleigh/Durham Chicago Washington, D.C. Southern California Bay Area Denver NYC Boston PA Portsmouth Austin Reno Corporate & Specialized Banking Community Banking Digital Banking Deep relationship-based community banking predominantly in the Northeast with selected presence in expansion markets Serving small and medium-sized businesses, and individuals, with a comprehensive suite of loan and deposit products National corporate niche businesses where Customers has differentiated capabilities, often enhanced through technology, to create value for clients Serving sophisticated corporate businesses above the complexity level of most community banks but with a higher level of service and attention than large regionals provide Consumer Suite of loan and deposit products delivered digitally to clients; increasingly generating fee and “fee-like” revenue with limited credit risk through our HFS strategy Commercial Transaction banking (treasury and payment services) with associated deposits D es cr ip tio n Regional C&I, owner-occupied CRE, SBA, multifamily, non-owner- occupied CRE, mortgage Operating deposit accounts and treasury services (commercial and consumer) Lender finance, capital call lines, venture banking, mortgage finance, equipment finance, healthcare, real estate specialty finance Operating deposit accounts and treasury services Consumer installment lending Payments Online savings Pr od uc ts

 
23 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. 0 Demonstrated Sustainable Organic Growth Increasing Revenue, EPS and TBVPS at 15%+ CAGR Over the Last Five Years Total Revenue CAGR FY’18-FY’23, percent Diluted EPS CAGR FY’18-FY’23, percent Tangible Book Value1 CAGR Q4’18-Q4’23, percent 1. Non-GAAP measure, refer to appendix for reconciliation CUBI Top Quartile $10-100B US Banks 19% 12% CUBI Top Quartile $10-100B US Banks 33% 7% CUBI Top Quartile $10-100B US Banks 15% 8% Differentiated Performance Relative to Industry • CUBI 5-year CAGR growth in Revenue, EPS and TBVPS1 greater than top quartile of $10-100 billion US banks • #1 EPS compounder among $10-100 billion US banks

 
24 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. 20% 49% 30% 1% FICO Score1 660-679 680-699 700-749 750+ 23% 35% 24% 12% 5% 1% 0-9.99% 10 – 19.99% 20 – 29.99% 30 – 39.99% 40 – 49.99% > 50% Unknown Geography Profession Debt to Income Ratio1 Borrower Income 23% 45% 32% <$50K $50K -$100K >$100K 20% 11% 20% 27% 22% West Southwest Midwest Southeast Northeast Consumer Installment Loans – Portfolio Credit Metrics Purpose 64%9% 6% 20% Personal Loan Specialty Home Improvement Student Loan 96% 2% 1% Non COVID-19 Impacted Segments Non-Professional Retail & Restaurants Average FICO Score1 ~746 Average DTI1 ~20% Average Borrower Income ~$101k Weighted average life of ~2.3 years Note: Data as of September 30, 2024; includes consumer installment HFS loans 1. DTI and FICO scores as of time of origination

 
25 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Investment Securities – AFS percent, Q3’24 Securities Portfolio Generating Attractive Returns with Minimal Credit and Duration Risk • Spot yield: 5.23% • Effective duration: 2.0 years • Floating rate securities: 30% • Credit rating: 63% AAA with only 3% at BB and below 59%25% 14% 1% MBS & CMO Corporate ABS Other Total: $2.4 billion Investment Securities – HTM percent, Q3’24 • Spot yield: 4.31% • Effective duration: 3.5 years • Floating rate securities: 28% • Credit rating: 43% AAA with no rated securities non-investment grade • ABS: $0.5 billion of credit enhanced asset backed securities from sale of consumer installment loan portfolio in Q3’22, Q2’23 and Q3’24 49%51% MBS & CMO Credit Enhanced ABS Total: $1.1 billion

 
26 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Selected 2024 Proxy Peers • Ameris • Associated • Atlantic Union • BankUnited • Commerce • Community Bank System • FB Financial • First Busey • First Financial (OH) • First Merchants • F.N.B. • Fulton • Independent • Old National • Pinnacle • Sandy Spring • TowneBank • United • United Community • WesBanco • WSFS Note: Excludes the following banks due to lack of available disclosure –Axos, Eastern, Northwest, Provident, Silvergate (removed following its March 8, 2023 announcement that it would wind down operations and liquidate the bank)

 
27 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Robust Sources of Liquidity 1. Includes CLOs Liquidity Sources ($000's) 3Q 24 2Q 24 QoQ Change Cash and Cash Equivalents $3,088,620 $3,048,586 $40,034 FHLB Available Borrowing Capacity $986,770 $966,409 $20,361 FRB Available Borrowing Capacity $4,180,824 $4,283,486 ($102,662) Investments (MV AFS + HTM) $0 Agency & Non-Agency MBS & CMO $1,960,267 $1,953,596 $6,671 Corporates $594,972 $587,746 $7,226 ABS (1) $886,265 $899,215 ($12,950) Other AFS $34,336 $33,892 $443 Less: Pledged Securities HTM & AFS ($1,698,140) ($1,733,875) $35,735 Net Unpledged Securities $1,777,699 $1,740,574 $37,125 Total $10,033,914 $10,039,056 ($5,142)

 
28 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. 1. Excludes mortgage finance reported at fair value, loans held for sale 2. Utilized Moody’s September 2024 baseline and adverse forecast scenario with qualitative adjustments for Q3’24 provision 3. Utilized Moody’s June 2024 baseline and adverse forecast scenario with qualitative adjustments for Q2’24 provision 4. Non-GAAP measure, refer to appendix for reconciliation Allowance for Credit Losses for Loans and Leases ($ in thousands) September 30, 2024 June 30, 2024 Amortized Cost1 Allowance for Credit Losses Lifetime Loss Rate2 Amortized Cost1 Allowance for Credit Losses Lifetime Loss Rate3 Loans and Leases Receivable: Commercial: Commercial and Industrial, including Specialty Lending $ 6,672,933 $ 25,191 0.38 % $ 6,740,992 $ 23,721 0.35 % Multifamily 2,115,978 18,090 0.85 % 2,067,332 20,652 1.00 % Commercial Real Estate Owner Occupied 981,804 10,913 1.11 % 805,779 8,431 1.05 % Commercial Real Estate Non-Owner Occupied 1,326,591 17,303 1.30 % 1,202,606 17,966 1.49 % Construction 174,509 1,606 0.92 % 163,409 1,856 1.14 % Total Commercial Loans and Leases Receivable $ 11,271,915 $ 73,103 0.65 % $ 10,980,118 $ 72,626 0.66 % Consumer: Residential Real Estate $ 500,786 $ 5,838 1.17 % $ 481,503 $ 5,884 1.22 % Manufacturing Housing 34,481 4,080 11.83 % 35,901 4,094 11.40 % Installment 720,101 50,137 6.96 % 756,682 49,832 6.59 % Total Consumer Loans Receivable $ 1,255,368 $ 60,055 4.78 % $ 1,274,086 $ 59,810 4.69 % Total Loans and Leases Receivable $ 12,527,783 $ 133,158 1.06 %4 $ 12,254,204 $ 132,436 1.08 %4

 
29 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Customers believes 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 Customers' 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. Reconciliation of Non-GAAP Measures - Unaudited

 
30 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core Earnings and Adjusted Core Earnings - Customers Bancorp Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 (dollars in thousands, except per share data) USD Per share USD Per share USD Per share USD Per share USD Per share GAAP net income to common shareholders $ 42,937 $ 1.31 $ 54,300 $ 1.66 $ 45,926 $ 1.40 $ 58,223 $ 1.79 $ 82,953 $ 2.58 Reconciling items (after tax): Severance expense 540 0.02 1,928 0.06 — — 473 0.01 — — (Gains) losses on investment securities (322) (0.01) 561 0.02 57 0.00 (85) (0.00) 492 0.02 Derivative credit valuation adjustment 185 0.01 (44) (0.00) 169 0.01 267 0.01 (151) (0.00) Unrealized losses on loans held for sale 498 0.02 — — — — — — — — FDIC special assessment — 0.00 138 0.00 380 0.01 2,755 0.08 — — Unrealized (gain) on equity method investments — — (8,316) (0.25) — — — — — — Core earnings $ 43,838 $ 1.34 $ 48,567 $ 1.49 $ 46,532 $ 1.42 $ 61,633 $ 1.90 $ 83,294 $ 2.59 One-time non-interest expense items recorded in 2024 (after-tax): Deposit servicing fees prior to 2024 — — — — 5,405 0.16 — — — — FDIC premiums prior to 2024 — — — — 3,200 0.10 — — — — Non-income taxes prior to 2024 (2,457) (0.07) — — — — — — — — Total one-time non-interest expense items (2,457) (0.07) — — 8,605 0.26 — — — — Adjusted core earnings (adjusted for one-time non-interest expense items) $ 41,381 $ 1.26 $ 48,567 $ 1.49 $ 55,137 $ 1.68 $ 61,633 $ 1.90 $ 83,294 $ 2.59

 
31 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core Return on Average Assets and Adjusted Core Return on Average Assets - Customers Bancorp (dollars in thousands except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 GAAP net income $ 46,743 $ 58,085 $ 49,726 $ 62,092 $ 86,756 Reconciling items (after tax): Severance expense 540 1,928 — 473 — (Gains) losses on investment securities (322) 561 57 (85) 492 Derivative credit valuation adjustment 185 (44) 169 267 (151) Unrealized losses on loans held for sale $ 498 — — — — FDIC special assessment — 138 380 2,755 — Unrealized (gain) on equity method investments $ — (8,316) — — — Core net income $ 47,644 $ 52,352 $ 50,332 $ 65,502 $ 87,097 One-time non-interest expense items recorded in 2024 (after-tax): Deposit servicing fees prior to 2024 — — 5,405 — — FDIC premiums prior to 2024 — — 3,200 — — Non-income taxes prior to 2024 (2,457) — — — — Total one-time non-interest expense items (2,457) — 8,605 — — Core net income adjusted for one-time non-interest expense items $ 45,187 $ 52,352 $ 58,937 $ 65,502 $ 87,097 Average total assets $ 21,230,404 $ 20,985,203 $ 21,335,229 $ 21,252,273 $ 21,978,010 Core return on average assets 0.89 % 1.00 % 0.95 % 1.22 % 1.57 % Adjusted core return on average assets (adjusted for one-time non-interest expense items) 0.85 % 1.00 % 1.11 % 1.22 % 1.57 %

 
32 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core Return on Average Common Equity and Adjusted Core Return on Average Common Equity - Customers Bancorp (dollars in thousands except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 GAAP net income to common shareholders $ 42,937 $ 54,300 $ 45,926 $ 58,223 $ 82,953 Reconciling items (after tax): Severance expense 540 1,928 — 473 — (Gains) losses on investment securities (322) 561 57 (85) 492 Derivative credit valuation adjustment 185 (44) 169 267 (151) Unrealized losses on loans held for sale 498 — — — — Tax on surrender of bank-owned life insurance policies — — — — — FDIC special assessment — 138 380 2,755 — Unrealized (gain) on equity method investments — (8,316) — — — Core earnings $ 43,838 $ 48,567 $ 46,532 $ 61,633 $ 83,294 One-time non-interest expense items recorded in 2024 (after-tax): Deposit servicing fees prior to 2024 — — 5,405 — — FDIC premiums prior to 2024 — — 3,200 — — Non-income taxes prior to 2024 (2,457) — — — — Total one-time non-interest expense items (2,457) — 8,605 — — Adjusted core earnings (adjusted for one-time non-interest expense items) $ 41,381 $ 48,567 $ 55,137 $ 61,633 $ 83,294 Average total common shareholders' equity $ 1,636,242 $ 1,576,595 $ 1,529,211 $ 1,449,728 $ 1,373,244 Core return on average common equity 10.7 % 12.4 % 12.2 % 16.9 % 24.1 % Adjusted core return on average common equity (adjusted for one-time non-interest expense items) 10.1 % 12.4 % 14.5 % 16.9 % 24.1 %

 
33 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core Pre-Tax Pre-Provision Net Income and ROAA and Adjusted Core Pre-Tax Pre-Provision Net Income and ROAA - Customers Bancorp (dollars in thousands except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 GAAP net income $ 46,743 $ 58,085 $ 49,726 $ 62,092 $ 86,756 Reconciling items: Income tax expense (725) 19,032 15,651 21,796 23,470 Provision (benefit) for credit losses 17,066 18,121 17,070 13,523 17,856 Provision (benefit) for credit losses on unfunded commitments 642 1,594 430 (136) 48 Severance expense 659 2,560 — 639 — (Gains) losses on investment securities (394) 744 75 (114) 626 Derivative credit valuation adjustment 226 (58) 222 361 (192) FDIC special assessment — 183 500 3,723 — Unrealized (gain) on equity method investments — (11,041) — — — Unrealized losses on loans held for sale 607 — — — — Net income - pre-tax pre-provision $ 64,824 $ 89,220 $ 83,674 $ 101,884 $ 128,564 One-time non-interest expense items recorded in 2024 (after-tax): Deposit servicing fees prior to 2024 — — 7,106 — — FDIC premiums prior to 2024 — — 4,208 — — Non-income taxes prior to 2024 (2,997) — — — — Total one-time non-interest expense items (2,997) — 11,314 — — Adjusted core pre-tax pre-provision net income (adjusted for one-time non-interest expense items) $ 61,827 $ 89,220 $ 94,988 $ 101,884 $ 128,564 Average total assets $ 21,230,404 $ 20,985,203 $ 21,335,229 $ 21,252,273 $ 21,978,010 Core pre-tax pre-provision ROAA 1.21 % 1.71 % 1.58 % 1.90 % 2.32 % Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items) 1.16 % 1.71 % 1.79 % 1.90 % 2.32 %

 
34 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) 1. Core efficiency ratio calculated as non-interest expense divided by core revenue 2. Adjusted core efficiency ratio calculated as adjusted core non-interest expense divided by core revenue Core Efficiency Ratio and Adjusted Core Efficiency Ratio - Customers Bancorp (dollars in thousands except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 GAAP net interest income $ 158,545 $ 167,653 $ 160,385 $ 172,506 $ 199,773 GAAP non-interest income $ 8,557 $ 31,037 $ 21,231 $ 18,672 $ 17,775 (Gains) losses on investment securities (394) 744 75 (114) 626 Derivative credit valuation adjustment 226 (58) 222 361 (192) Unrealized (gain) on equity method investments — (11,041) — — — Unrealized losses on loans held for sale 607 — — — — Core non-interest income 8,996 20,682 21,528 18,919 18,209 Core revenue $ 167,541 $ 188,335 $ 181,913 $ 191,425 $ 217,982 GAAP non-interest expense $ 104,018 $ 103,452 $ 99,169 $ 93,767 $ 89,466 Severance expense (659) (2,560) — (639) — FDIC special assessment — (183) (500) (3,723) — Core non-interest expense $ 103,359 $ 100,709 $ 98,669 $ 89,405 $ 89,466 One-time non-interest expense items recorded in 2024: Deposit servicing fees prior to 2024 — — (7,106) — — FDIC premiums prior to 2024 — — (4,208) — — Non-income taxes prior to 2024 2,997 — — — — Total one-time non-interest expense items 2,997 — (11,314) — — Adjusted core non-interest expense $ 106,356 $ 100,709 $ 87,355 $ 89,405 $ 89,466 Core efficiency ratio (1) 61.7 % 53.5 % 54.2 % 46.7 % 41.0 % Adjusted core efficiency ratio (adjusted for one-time non-interest expense items) (2) 63.5 % 53.5 % 48.0 % 46.7 % 41.0 %

 
35 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core Non-Interest Expense to Average Total Assets and Adjusted Core Non-Interest Expense to Average Total Assets - Customers Bancorp (dollars in thousands except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 GAAP non-interest expense $ 104,018 $ 103,452 $ 99,169 $ 93,767 $ 89,466 Severance expense (659) (2,560) — (639) — FDIC special assessment — (183) (500) (3,723) — Core non-interest expense $ 103,359 $ 100,709 $ 98,669 $ 89,405 $ 89,466 One-time non-interest expense items recorded in 2024: Deposit servicing fees prior to 2024 — — (7,106) — — FDIC premiums prior to 2024 — — (4,208) — — FDIC premiums prior to 2024 2,997 — — — — Total one-time non-interest expense items 2,997 — (11,314) — — Adjusted core non-interest expense $ 106,356 $ 100,709 $ 87,355 $ 89,405 $ 89,466 Average total assets $ 21,230,404 $ 20,985,203 $ 21,335,229 $ 21,252,273 $ 21,978,010 Core non-interest expense to average assets 1.94 % 1.93 % 1.86 % 1.67 % 1.62 % Adjusted core non-interest expense to average total assets (adjusted for one-time non-interest expense items) 1.99 % 1.93 % 1.65 % 1.67 % 1.62 %

 
36 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Tangible Common Equity to Tangible Assets - Customers Bancorp (dollars in thousands except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 GAAP total shareholders' equity $ 1,801,180 $ 1,746,865 $ 1,691,617 $ 1,638,394 $ 1,561,607 Reconciling items: Preferred stock (137,794) (137,794) (137,794) (137,794) (137,794) Goodwill and other intangibles (3,629) (3,629) (3,629) (3,629) (3,629) Tangible common equity $ 1,659,757 $ 1,605,442 $ 1,550,194 $ 1,496,971 $ 1,420,184 GAAP Total assets $ 21,456,082 $ 20,942,975 $ 21,347,367 $ 21,316,265 $ 21,857,152 Reconciling items: Goodwill and other intangibles (3,629) (3,629) (3,629) (3,629) (3,629) Tangible assets $ 21,452,453 $ 20,939,346 $ 21,343,738 $ 21,312,636 $ 21,853,523 Tangible common equity to tangible assets 7.7 % 7.7 % 7.3 % 7.0 % 6.5 %

 
37 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Tangible Book Value per Common Share - Customers Bancorp (dollars in thousands except per share data) Q3 2024 Q4 2023 Q4 2022 Q4 2021 Q4 2020 Q4 2019 Q4 2018 GAAP total shareholders' equity $ 1,801,180 $ 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) (137,794) (217,471) (217,471) (217,471) Goodwill and other intangibles (3,629) (3,629) (3,629) (3,736) (14,298) (15,195) (16,499) Tangible common equity $ 1,659,757 $ 1,496,971 $ 1,261,538 $ 1,224,687 $ 885,317 $ 820,129 $ 722,846 Common shares outstanding 31,342,107 31,440,906 32,373,697 32,913,267 31,705,088 31,336,791 31,003,028 Tangible book value per common share $ 52.96 $ 47.61 $ 38.97 $ 37.21 $ 27.92 $ 26.17 $ 23.32

 
v3.24.3
Document and Entity Information
Oct. 31, 2024
Entity Information [Line Items]  
Amendment Flag false
Entity Incorporation, State or Country Code PA
Document Type 8-K
Document Period End Date Oct. 31, 2024
Entity Registrant Name Customers Bancorp, Inc.
Entity File Number 001-35542
Entity Tax Identification Number 27-2290659
Entity Address, Address Line One 701 Reading Avenue
Entity Address, City or Town West Reading
Entity Address, State or Province PA
Entity Address, Postal Zip Code 19611
City Area Code 610
Local Phone Number 933-2000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001488813
Voting Common Stock, par value $1.00 per share | New York Stock Exchange  
Entity Information [Line Items]  
Title of 12(b) Security Voting Common Stock, par value $1.00 per share
Trading Symbol CUBI
Security Exchange Name NYSE
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E, par value $1.00 per share | New York Stock Exchange  
Entity Information [Line Items]  
Title of 12(b) Security Fixed-to-Floating Rate Non-Cumulative PerpetualPreferred Stock, Series E, par value $1.00 per share
Trading Symbol CUBI/PE
Security Exchange Name NYSE
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, par value $1.00 per share | New York Stock Exchange  
Entity Information [Line Items]  
Title of 12(b) Security Fixed-to-Floating Rate Non-Cumulative PerpetualPreferred Stock, Series F, par value $1.00 per share
Trading Symbol CUBI/PF
Security Exchange Name NYSE
Subordinated Debt [Member] | New York Stock Exchange  
Entity Information [Line Items]  
Title of 12(b) Security 5.375% Subordinated Notes due 2034
Trading Symbol CUBB
Security Exchange Name NYSE
Customers Bancorp (NYSE:CUBI-F)
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