Customers Bancorp, Inc. (NYSE:CUBI)
Full Year 2022 Highlights
- 2022 net income available to common shareholders was $218.4
million, or $6.51 per diluted share; ROAA was 1.13% and ROCE was
17.40%.
- 2022 core earnings* were $256.4 million, or $7.63 per diluted
share; Core ROAA* was 1.32% and Core ROCE* was 20.43%.
- 2022 core earnings excluding Paycheck Protection Program*
("PPP") were $218.7 million, or $6.51 per diluted share, up 46.2%
over 2021. This included a pre-tax provision release of $36.8
million, or $0.86 per diluted share, from the sale of $500.0
million of consumer installment loans in Q3 2022, and other full
year 2022 core earnings (excluding PPP)* of $5.65.
- 2022 adjusted pre-tax pre-provision net income* was $400.7
million; adjusted pre-tax pre-provision ROAA* was 1.99%; adjusted
pre-tax pre-provision ROCE* was 31.16%.
- Year-over-year loan growth was $1.2 billion, or 8.4%.
Year-over-year loan growth excluding PPP* was $3.5 billion, or
30.7%, led by our low-risk variable rate corporate and specialty
lending verticals.
- Year-over-year deposit growth was $1.4 billion, up 8.2%.
- 2022 net interest margin, tax equivalent was 3.19%. 2022 net
interest margin, tax equivalent, excluding the impact of PPP loans*
was 3.16%.
- 2022 provision for credit losses on loans and leases of $59.5
million was largely driven by the impact of loan growth, net of the
sale of consumer installment loans in Q3 2022, the recognition of
weaker macroeconomic forecasts, and certain one-time
charge-offs.
- Non-performing assets were $30.8 million, or 0.15% of total
assets, at December 31, 2022 compared to $49.8 million, or 0.25% of
total assets, at December 31, 2021. Allowance for credit losses on
loans and leases equaled 426% of non-performing loans at December
31, 2022, compared to 278% at December 31, 2021.
- Book value per share and tangible book value per share* grew
year over year by $1.76 or 4.7%, despite increased AOCI losses of
$158.1 million over the same time period. Tangible book value per
share* has grown by 77.9% over the past 5 years, significantly
higher than the industry average of 2% for mid-cap banks (1).
- Repurchased 830,145 common shares for $33.2 million in 2022,
leaving 1.9 million of common shares authorized to be repurchased
by September 2023.
* Non-GAAP measure. Customers' reasons for
the use of the non-GAAP measure and a detailed reconciliation
between the non-GAAP measure and the comparable GAAP amount are
included at the end of this document.
(1) Mid-cap banks as reported by KRX
Index.
Fourth Quarter 2022 Highlights
- Q4 2022 net income available to common shareholders was $25.6
million, or $0.77 per diluted share; ROAA was 0.55% and ROCE was
8.05%.
- Q4 2022 core earnings* were $39.4 million, or $1.19 per diluted
share; Core ROAA* was 0.81% and Core ROCE* was 12.36%.
- Q4 2022 core earnings (excluding PPP)* were $45.3 million, or
$1.37 per diluted share, up 22.9% over Q4 2021.
- Q4 2022 adjusted pre-tax pre-provision net income* was $81.4
million; adjusted pre-tax pre-provision ROAA* was 1.56%; adjusted
pre-tax pre-provision ROCE* was 24.59%.
- Q4 2022 loan growth was $458.0 million, or 3.0%. Q4 2022 loan
growth excluding PPP* was $614.5 million, or 4.3%, led by our
low-risk variable rate corporate and specialty lending
verticals.
- Q4 2022 deposit growth was $634.5 million, or 3.6%.
- Q4 2022 net interest margin, tax equivalent was 2.67%. Q4 2022
net interest margin, tax equivalent, excluding the impact of PPP
loans* was 2.87%.
- Q4 2022 provision for credit losses on loans and leases of
$27.9 million was largely driven by the impact of loan growth, the
recognition of weaker macroeconomic forecasts, and one-time
charge-offs of $11.0 million for loans originated pursuant to the
PPP program.
- Non-performing assets were $30.8 million, or 0.15% of total
assets, at December 31, 2022 compared to $28.0 million, or 0.14% of
total assets, at September 30, 2022. Allowance for credit losses on
loans and leases equaled 426% of non-performing loans at December
31, 2022, compared to 466% at September 30, 2022.
- Q4 2022 book value per share and tangible book value per share*
grew by $0.62 or 1.6%, despite increased AOCI losses of $7.0
million over the same time period.
- Repurchased 166,000 common shares for $5.3 million in Q4
2022.
CEO Commentary
“We delivered another solid quarter and are extremely pleased
with our 2022 results despite the challenging interest rate and
economic environment,” said Customers Bancorp Chairman and CEO, Jay
Sidhu. “Our Q4 2022 GAAP earnings were negatively impacted by
after-tax securities net losses of $13.5 million, or $0.41 per
diluted share, which will benefit net interest margin in the
short-term and has an earn back of roughly one year as well as
after-tax net losses on PPP loans of $6.0 million, or $0.18 per
diluted share. However, we are very pleased to report that Q4 2022
earnings from the core bank* were $1.37 per diluted share, beating
internal targets and estimates, and bringing full year 2022 core
earnings (excluding PPP)* per share to $6.51. Our responsible
organic growth strategy is laser focused on credit quality with 90%
of our growth in low credit risk verticals. We have taken prudent
risk management strategic actions over the past several quarters to
ensure we are well positioned from a capital, credit, liquidity and
earnings perspective especially as we head into a highly uncertain
2023. We are also pleased to report that we beat the upper end of
our 2022 core earnings per share, excluding PPP* target of $4.75 -
$5.00 by 13%, even before considering the Q3 2022 pre-tax provision
release of $36.8 million. Core loan* growth in 2022 was led by
increases in low-risk variable rate specialty lending verticals of
$3.0 billion. Asset quality remains exceptional and credit reserves
are extremely robust at 426% of total non-performing loans. Our
loan and deposit pipelines remain strong and we are very focused on
improving our margins, moderating our growth, controlling our
expenses, actively buying back common shares to the extent we are
trading below book value, and creating exceptional value for our
shareholders. We remain very optimistic about our future,” Mr. Jay
Sidhu continued.
Core earnings excluding PPP* for Q4 2022 were $45.3 million, or
$1.37 per diluted share, calculated as shown below.
(Dollars in thousands, except per share
data)
USD
Per share
GAAP net income available to
shareholders
$
25,623
$
0.77
Less: PPP net loss, after-tax
(5,956
)
(0.18
)
GAAP net income to common shareholders,
excluding PPP
31,579
0.95
Losses on investment securities
13,543
0.41
Derivative credit valuation adjustment
202
0.01
Core earnings, excluding PPP
$
45,324
$
1.37
Financial Highlights
(Dollars in thousands, except per share
data)
At or Three Months
Ended
Increase (Decrease)
Twelve Months Ended
Increase (Decrease)
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
Profitability Metrics:
Net income available for common
shareholders
$
25,623
$
98,647
$
(73,024
)
(74.0
) %
$
218,402
$
300,134
$
(81,732
)
(27.2
) %
Diluted earnings per share
$
0.77
$
2.87
$
(2.10
)
(73.2
) %
$
6.51
$
8.91
$
(2.40
)
(26.9
) %
Core earnings*
$
39,368
$
101,213
$
(61,845
)
(61.1
) %
$
256,415
$
344,700
$
(88,285
)
(25.6
) %
Core earnings per share*
$
1.19
$
2.95
$
(1.76
)
(59.7
) %
$
7.63
$
10.23
$
(2.60
)
(25.4
) %
Core earnings, excluding PPP*
$
45,324
$
36,890
$
8,434
22.9
%
$
218,746
$
149,650
$
69,096
46.2
%
Core earnings per share, excluding
PPP*
$
1.37
$
1.07
$
0.30
28.0
%
$
6.51
$
4.44
$
2.07
46.6
%
Return on average assets ("ROAA")
0.55
%
2.08
%
(1.53
)
1.13
%
1.64
%
(0.51
)
Core ROAA*
0.81
%
2.13
%
(1.32
)
1.32
%
1.86
%
(0.54
)
Core ROAA, excluding PPP*
0.93
%
0.80
%
0.13
1.14
%
0.84
%
0.30
Return on average common equity
("ROCE")
8.05
%
33.18
%
(25.13
)
17.40
%
28.75
%
(11.35
)
Core ROCE*
12.36
%
34.04
%
(21.68
)
20.43
%
33.02
%
(12.59
)
Adjusted pre-tax pre-provision net
income*
$
81,377
$
130,595
$
(49,218
)
(37.7
) %
$
400,712
$
471,046
$
(70,334
)
(14.9
) %
Adjusted pre-tax pre-provision net income
ROAA, excluding PPP*
1.67
%
1.37
%
0.30
1.81
%
1.44
%
0.37
Net interest margin, tax equivalent
2.67
%
4.14
%
(1.47
)
3.19
%
3.70
%
(0.51
)
Net interest margin, tax equivalent,
excluding PPP loans*
2.87
%
3.12
%
(0.25
)
3.16
%
3.16
%
—
Loan yield
5.64
%
5.48
%
0.16
5.00
%
4.73
%
0.27
Loan yield, excluding PPP*
5.86
%
4.41
%
1.45
5.05
%
4.37
%
0.68
Cost of deposits
2.73
%
0.36
%
2.37
1.31
%
0.44
%
0.87
Efficiency ratio
49.20
%
38.70
%
10.50
44.81
%
40.38
%
4.43
Core efficiency ratio*
49.12
%
38.14
%
10.98
43.02
%
37.54
%
5.48
Balance Sheet Trends:
Total assets
$
20,896,112
$
19,575,028
$
1,321,084
6.7
%
Total assets, excluding PPP*
$
19,897,959
$
16,325,020
$
3,572,939
21.9
%
Total loans and leases
$
15,794,671
$
14,568,885
$
1,225,786
8.4
%
Total loans and leases, excluding PPP*
$
14,796,518
$
11,318,877
$
3,477,641
30.7
%
Non-interest bearing demand deposits
$
1,885,045
$
4,459,790
$
(2,574,745
)
(57.7
) %
Total deposits
$
18,156,953
$
16,777,924
$
1,379,029
8.2
%
Capital Metrics:
Common Equity
$
1,265,167
$
1,228,423
$
36,744
3.0
%
Tangible Common Equity*
$
1,261,538
$
1,224,687
$
36,851
3.0
%
Common Equity to Total Assets
6.05
%
6.28
%
(0.23
)
Tangible Common Equity to Tangible
Assets*
6.04
%
6.26
%
(0.22
)
Tangible Common Equity to Tangible Assets,
excluding PPP*
6.34
%
7.50
%
(1.16
)
Book Value per common share
$
39.08
$
37.32
$
1.76
4.7
%
Tangible Book Value per common share*
$
38.97
$
37.21
$
1.76
4.7
%
Common equity Tier 1 capital ratio (1)
9.5
%
10.0
%
(0.5
)
Total risk based capital ratio (1)
12.0
%
12.9
%
(0.9
)
(1)
Regulatory capital ratios as of December
31, 2022 are estimates.
*
Non-GAAP measure. Customers' reasons for
the use of the non-GAAP measure and a detailed reconciliation
between the non-GAAP measure and the comparable GAAP amount are
included at the end of this document.
Paycheck Protection Program (PPP)
We funded, either directly or indirectly, about 358,000 loans
totaling $10.3 billion. Through the program, we earned close to
$350 million of deferred origination fees from the SBA, which was
significantly accretive to our earnings and capital levels as these
loans were forgiven by the government. In Q4 2022, we recognized
only $4 million of these fees in earnings as forgiveness levels
were slower than expected, bringing total fees recognized to date
to $322 million, and $26 million remaining to be recognized in
2023. "As we've stated previously, it is difficult to predict the
timing of PPP forgiveness. We expect most of the fees to be
recognized over the next two quarters; however, because we fully
paid off the FRB PPP liquidity facility in third quarter 2021,
these loans are currently being funded with higher cost funding,
reducing their short-term profitability. This was particularly
evident in Q4 2022 as higher PPP-related expenses resulted in a
total negative impact to Q4 2022 earnings of $0.18 per diluted
share. This included negative net interest income of $2.8 million
resulting from higher funding costs, $11.0 million of one-time
charge-offs increasing provision expense, and a $7.5 million gain
resulting from a legal settlement with one of our third party PPP
service providers. These one-time charge-offs are before the impact
of any contractual indemnities or recoveries we may receive in
future periods," commented Customers Bancorp CFO, Carla
Leibold.
Key Balance Sheet Trends
Loans and Leases
The following table presents the composition of total loans and
leases as of the dates indicated:
(Dollars in thousands)
December 31, 2022
% of Total
September 30, 2022
% of Total
December 31, 2021
% of Total
Commercial:
Commercial & industrial:
Specialty lending
$
5,412,887
34.3
%
$
5,103,974
33.3
%
$
2,403,991
16.5
%
Other commercial & industrial
1,135,336
7.2
1,064,332
7.0
942,679
6.5
Multifamily
2,217,098
14.0
2,267,376
14.8
1,486,308
10.2
Loans to mortgage companies
1,447,919
9.2
1,708,587
11.1
2,362,438
16.2
Commercial real estate owner occupied
885,339
5.6
726,670
4.7
654,922
4.5
Loans receivable, PPP
998,153
6.3
1,154,632
7.5
3,250,008
22.3
Commercial real estate non-owner
occupied
1,290,730
8.2
1,263,211
8.2
1,121,238
7.7
Construction
162,009
1.0
136,133
0.9
198,981
1.4
Total commercial loans and leases
13,549,471
85.8
13,424,915
87.5
12,420,565
85.3
Consumer:
Residential
498,781
3.1
466,888
3.0
350,984
2.4
Manufactured housing
45,076
0.3
46,990
0.3
52,861
0.3
Installment:
Personal
1,306,376
8.3
1,056,432
6.9
1,392,862
9.6
Other
394,967
2.5
341,463
2.3
351,613
2.4
Total consumer loans
2,245,200
14.2
1,911,773
12.5
2,148,320
14.7
Total loans and leases
$
15,794,671
100.0
%
$
15,336,688
100.0
%
$
14,568,885
100.0
%
Commercial and industrial ("C&I") loans and leases,
including specialty lending, increased $3.2 billion, or 95.7%
year-over-year, to $6.5 billion. Practically all of the increases
in outstanding balances were in the low-risk variable rate secured
categories of Capital Call Lines and Lender Finance (collectively
referred to as Fund Finance). Multifamily loans increased $730.8
million, or 49.2%, to $2.2 billion, commercial real estate owner
occupied loans increased $230.4 million, or 35.2%, to $885.3
million, commercial real estate non-owner occupied loans increased
$169.5 million, or 15.1% to $1.3 billion and residential loans
increased $147.8 million, or 42.1%, to $498.8 million
year-over-year. These increases in loans and leases were partially
offset by a decrease in total consumer installment loans of $43.1
million, or 2.5%, to $1.7 billion primarily due to the sale of
$500.0 million of consumer installment loans in Q3 2022 offsetting
new originations and originations and purchases of certain consumer
installment loans with the intent to sell and a decrease in
construction loans of $37.0 million, or 18.6%, to $162.0
million.
Allowance for Credit Losses on Loans and Leases
The following table presents allowance for credit losses on
loans and leases (information as of the dates and periods
indicated):
At or Three Months
Ended
Increase (Decrease)
At or Three Months
Ended
Increase (Decrease)
(Dollars in thousands)
December 31, 2022
September 30, 2022
December 31, 2022
December 31, 2021
Allowance for credit losses on loans and
leases
$
130,924
$
130,197
$
727
$
130,924
$
137,804
$
(6,880
)
Provision (benefit) for credit losses on
loans and leases
$
27,891
$
(7,836
)
$
35,727
$
27,891
$
13,890
$
14,001
Net charge-offs (recoveries) from loans
held for investment
$
27,164
$
18,497
$
8,667
$
27,164
$
7,582
$
19,582
Annualized net charge-offs (recoveries) to
average loans and leases
0.70
%
0.47
%
0.70
%
0.21
%
Coverage of credit loss reserves for loans
and leases held for investment
0.93
%
0.95
%
0.93
%
1.12
%
Coverage of credit loss reserves for loans
and leases held for investment, excluding PPP*
1.00
%
1.03
%
1.00
%
1.53
%
*
Non-GAAP measure. Customers' reasons for
the use of the non-GAAP measure and a detailed reconciliation
between the non-GAAP measure and the comparable GAAP amount are
included at the end of this document.
The increase in net charge-offs in Q4 2022 compared to Q3 2022
was primarily due to one-time charge-offs of $11.0 million for
certain loans originated under the PPP program that were
subsequently determined to be ineligible for SBA forgiveness and
guarantee and were deemed uncollectible.
Provision (Benefit) for Credit Losses
Three Months Ended
Increase (Decrease)
Three Months Ended
Increase (Decrease)
(Dollars in thousands)
December 31, 2022
September 30, 2022
December 31, 2022
December 31, 2021
Provision (benefit) for credit losses on
loans and leases
$
27,891
$
(7,836
)
$
35,727
$
27,891
$
13,890
$
14,001
Provision (benefit) for credit losses on
available for sale debt securities
325
(158
)
483
325
—
325
Provision (benefit) for credit losses
28,216
(7,994
)
36,210
28,216
13,890
14,326
Provision (benefit) for credit losses on
unfunded commitments
153
254
(101
)
153
352
(199
)
Total provision (benefit) for credit
losses
$
28,369
$
(7,740
)
$
36,109
$
28,369
$
14,242
$
14,127
The provision for credit losses on loans and leases in Q4 2022
was $27.9 million, compared to a benefit to provision of $7.8
million in Q3 2022. The provision in Q4 2022 was primarily due to
loan growth, one-time charge-offs of $11.0 million for certain
loans originated under the PPP program that were subsequently
determined to be ineligible for SBA forgiveness and guarantee and
ultimately deemed uncollectible and our recognition of weaker
macroeconomic forecasts, as compared to a benefit to provision in
Q3 2022 primarily from the sale of $500.0 million of consumer
installment loans in connection with the Company's balance sheet
optimization initiatives. The sale transaction resulted in
approximately $36.8 million of release in allowance for credit
losses in Q3 2022, which was included in core earnings* and
contributed approximately $0.86 per diluted share. The provision
for credit losses on available for sale investment securities in Q4
2022 was $0.3 million compared to a benefit to provision of $0.2
million in Q3 2022.
The provision for credit losses on loans and leases in Q4 2022
was $27.9 million, compared to a provision of $13.9 million in Q4
2021. The provision in Q4 2022 was primarily due to loan growth,
one-time charge-offs of $11.0 million for certain loans originated
under the PPP program that were subsequently determined to be
ineligible for SBA forgiveness and guarantee and ultimately deemed
uncollectible and our recognition of weaker macroeconomic
forecasts. The provision for credit losses on available for sale
investment securities in Q4 2022 was $0.3 million compared to no
provision in Q4 2021.
Asset Quality
The following table presents asset quality metrics as of the
dates indicated:
(Dollars in thousands)
December 31, 2022
September 30, 2022
Increase (Decrease)
December 31, 2022
December 31, 2021
Increase (Decrease)
Non-performing assets ("NPAs"):
Nonaccrual / non-performing loans
("NPLs")
$
30,737
$
27,919
$
2,818
$
30,737
$
49,620
$
(18,883
)
Non-performing assets
$
30,783
$
27,965
$
2,818
$
30,783
$
49,760
$
(18,977
)
NPLs to total loans and leases
0.19
%
0.18
%
0.19
%
0.34
%
Reserves to NPLs
425.95
%
466.34
%
425.95
%
277.72
%
NPAs to total assets
0.15
%
0.14
%
0.15
%
0.25
%
Loans and leases risk ratings:
Commercial loans and leases (1)
Pass
$
10,793,980
$
10,262,647
$
531,333
$
10,793,980
$
6,389,228
$
4,404,752
Special Mention
138,829
104,560
34,269
138,829
230,065
(91,236
)
Substandard
291,118
329,878
(38,760
)
291,118
266,939
24,179
Total commercial loans and leases
11,223,927
10,697,085
526,842
11,223,927
6,886,232
4,337,695
Consumer loans
Performing
1,899,376
1,893,977
5,399
1,899,376
2,114,950
(215,574
)
Non-performing
21,591
16,680
4,911
21,591
17,116
4,475
Total consumer loans
1,920,967
1,910,657
10,310
1,920,967
2,132,066
(211,099
)
Loans and leases receivable
$
13,144,894
$
12,607,742
$
537,152
$
13,144,894
$
9,018,298
$
4,126,596
(1) Excludes loan receivable, PPP, as eligible PPP loans are
fully guaranteed by the Small Business Administration.
Over the last decade, we have developed a suite of commercial
loan products with one particularly important common denominator:
relatively low credit risk assumption. The Bank’s C&I, loans to
mortgage companies, corporate and specialty lending lines of
business, and multifamily loans for example, are characterized by
conservative underwriting standards and low loss rates. Because of
this emphasis, the Bank’s credit quality to date has been
incredibly healthy despite an adverse economic environment.
Maintaining strong asset quality also requires a highly active
portfolio monitoring process. In addition to frequent client
outreach and monitoring at the individual loan level, we employ a
bottom-up data driven approach to analyze the commercial portfolio.
Exposure to industry segments and CRE significantly impacted by
COVID-19 initially is not substantial.
Total consumer installment loans were approximately 8.1% of
total assets at December 31, 2022, 10.8% of total loans and leases
and 11.5% of core loans*, and were supported by an allowance for
credit losses of $68.7 million. At December 31, 2022, our consumer
installment portfolio had the following characteristics: average
original FICO score of 740, average debt-to-income of 19.0% and
average borrower income of $107 thousand.
Non-performing loans at December 31, 2022 were essentially flat
at 0.19% of total loans and leases, compared to 0.18% at September
30, 2022 and 0.34% at December 31, 2021.
Deposits
The following table presents the composition of our deposit
portfolio as of the dates indicated:
(Dollars in thousands)
December 31, 2022
% of Total
September 30, 2022
% of Total
December 31, 2021
% of Total
Demand, non-interest bearing
$
1,885,045
10.4
%
$
2,993,793
17.1
%
$
4,459,790
26.6
%
Demand, interest bearing
8,476,027
46.7
7,124,663
40.7
6,488,406
38.7
Total demand deposits
10,361,072
57.1
10,118,456
57.8
10,948,196
65.3
Savings
811,798
4.5
592,002
3.4
973,317
5.8
Money market
2,734,217
15.1
4,913,967
28.0
4,349,073
25.9
Time deposits
4,249,866
23.3
1,898,013
10.8
507,338
3.0
Total deposits
$
18,156,953
100.0
%
$
17,522,438
100.0
%
$
16,777,924
100.0
%
Total deposits increased $1.4 billion, or 8.2%, to $18.2 billion
at December 31, 2022 as compared to a year ago. Time deposits
increased $3.7 billion, or 737.7%, to $4.2 billion. This increase
was offset partially by decreases in money market deposits of $1.6
billion, or 37.1%, to $2.7 billion, total demand deposits of $587.1
million, or 5.4%, to $10.4 billion and savings deposits of $161.5
million, or 16.6%, to $811.8 million. The total cost of deposits
increased by 237 basis points to 2.73% in Q4 2022 from 0.36% in the
prior year primarily due to higher market interest rates and a
shift in deposit mix.
Capital
The following table presents certain capital amounts and ratios
as of the dates indicated:
(Dollars in thousands except per share
data)
December 31, 2022
September 30, 2022
December 31, 2021
Customers Bancorp, Inc.
Common Equity
$
1,265,167
$
1,249,137
$
1,228,423
Tangible Common Equity*
$
1,261,538
$
1,245,508
$
1,224,687
Common Equity to Total Assets
6.05
%
6.13
%
6.28
%
Tangible Common Equity to Tangible
Assets*
6.04
%
6.12
%
6.26
%
Tangible Common Equity to Tangible Assets,
excluding PPP*
6.34
%
6.48
%
7.50
%
Book Value per common share
$
39.08
$
38.46
$
37.32
Tangible Book Value per common share*
$
38.97
$
38.35
$
37.21
Common equity Tier 1 capital ratio (1)
9.5
%
9.8
%
10.0
%
Total risk based capital ratio (1)
12.0
%
12.5
%
12.9
%
(1)
Regulatory capital ratios as of December
31, 2022 are estimates.
*
Non-GAAP measure. Customers' reasons for
the use of the non-GAAP measure and a detailed reconciliation
between the non-GAAP measure and the comparable GAAP amount are
included at the end of this document.
Customers Bancorp's common equity increased $36.7 million to
$1.3 billion, and tangible common equity* increased $36.9 million
to $1.3 billion at December 31, 2022 compared to a year ago,
respectively, as earnings of $218.4 million more than offset a
negative impact to accumulated other comprehensive income ("AOCI")
from increased unrealized losses on investment securities of $158.1
million (net of taxes). Similarly, book value per common share
increased to $39.08 from $37.32, and tangible book value per common
share* increased to $38.97 at December 31, 2022 from $37.21 at
December 31, 2021, respectively. Customers remains well capitalized
by all regulatory measures.
At the Customers Bancorp level, the total risk based capital
ratio (estimate), common equity to total assets ratio and tangible
common equity to tangible assets ratio ("TCE ratio"), excluding PPP
loans*, were 12.0%, 6.05% and 6.34%, respectively, at December 31,
2022.
At the Customers Bank level, capital levels remained strong and
well above regulatory minimums. At December 31, 2022, estimated
Tier 1 capital and total risk-based capital were 11.1% and 12.2%,
respectively.
Key Profitability Trends
Net Interest Income
Net interest income totaled $135.1 million in Q4 2022, a
decrease of $23.9 million from Q3 2022, primarily due to lower PPP
net interest income of $12.4 million resulting from reduced
recognition of deferred fees of $7.0 million driven by lower loan
forgiveness in Q4 2022 and increased funding costs of $5.0 million,
reflecting increases in funding rates. Net interest income earned
by the core bank* decreased $11.5 million over Q3 2022, reflecting
the $500.0 million consumer loan sale in Q3 2022, higher funding
costs, and shift in funding mix. The increase in interest income on
investment securities and core loans* of $12.4 million and $25.7
million, respectively, mostly due to higher interest rates on
variable loans in specialty lending, were offset by higher expenses
paid on deposits, fed funds, FHLB advances and other borrowings of
$57.6 million from a shift in deposit mix and higher interest rates
during Q4 2022. Excluding PPP loans, average interest-earning
assets increased $0.5 billion. Interest-earning asset growth was
primarily driven by increases in C&I loans and leases, mostly
in specialty lending, investment securities and interest earning
deposits, partially offset by decreases in commercial loans to
mortgage companies and consumer installment loans. Compared to Q3
2022, total loan yields increased 56 basis points to 5.64%
primarily due to higher interest rates on variable rate loans in
specialty lending. Excluding PPP loans, the Q4 2022 total loan
yield* was 71 basis points higher than Q3 2022 reflecting increased
interest rates and the variable rate nature of the loan
portfolio.
Net interest income totaled $135.1 million in Q4 2022, a
decrease of $58.6 million from Q4 2021, primarily due to lower PPP
interest income of $74.8 million resulting from reduced recognition
of deferred fees of $68.0 million driven by lower loan forgiveness
in Q4 2022. This decrease was offset in part by increased net
interest income earned by the core bank of $22.9 million, up 20%
over Q4 2021, including increased interest income on investment
securities and core loans* of $27.8 million and $95.6 million,
respectively, mostly due to higher average balances and interest
rates on variable loans in specialty lending. In addition, higher
expenses paid on deposits, fed funds, FHLB advances and other
borrowings of $114.2 million resulted mainly from a shift in
deposit mix and higher interest rates during Q4 2022. Excluding PPP
loans, average interest-earning assets increased $4.5 billion.
Interest-earning asset growth was primarily driven by increases in
C&I loans and leases, mostly in specialty lending, investment
securities, multifamily loans and residential mortgages, offset in
part by decreases in commercial loans to mortgage companies and
interest earning deposits. Compared to Q4 2021, total loan yields
increased 16 basis points to 5.64% primarily due to higher interest
rates on variable rate loans in specialty lending, partially offset
by lower PPP yields driven by lower deferred fee recognition.
Excluding PPP loans, the Q4 2022 total loan yield* was 145 basis
points higher than Q4 2021 reflecting increased interest rates and
the variable rate nature of the loan portfolio.
Non-Interest Income
The following table presents details of non-interest income for
the periods indicated:
Three Months Ended
Increase (Decrease)
Three Months Ended
Increase (Decrease)
(Dollars in thousands)
December 31, 2022
September 30, 2022
December 31, 2022
December 31, 2021
Interchange and card revenue
$
71
$
72
$
(1
)
$
71
$
84
$
(13
)
Deposit fees
958
989
(31
)
958
1,026
(68
)
Commercial lease income
8,135
7,097
1,038
8,135
5,378
2,757
Bank-owned life insurance
1,975
3,449
(1,474
)
1,975
1,984
(9
)
Mortgage warehouse transactional fees
1,295
1,545
(250
)
1,295
2,262
(967
)
Gain (loss) on sale of SBA and other
loans
—
106
(106
)
—
2,493
(2,493
)
Loss on sale of consumer installment
loans
—
(23,465
)
23,465
—
—
—
Loan fees
4,017
3,008
1,009
4,017
2,513
1,504
Mortgage banking income
90
125
(35
)
90
262
(172
)
Gain (loss) on sale of investment
securities
(16,937
)
(2,135
)
(14,802
)
(16,937
)
(49
)
(16,888
)
Unrealized gain (loss) on investment
securities
28
(259
)
287
28
—
28
Unrealized gain (loss) on derivatives
43
563
(520
)
43
586
(543
)
Legal settlement gain
7,519
—
7,519
7,519
—
7,519
Other
151
(112
)
263
151
452
(301
)
Total non-interest income
$
7,345
$
(9,017
)
$
16,362
$
7,345
$
16,991
$
(9,646
)
Non-interest income totaled $7.3 million for Q4 2022, an
increase of $16.4 million compared to Q3 2022. The increase was
primarily due to $23.5 million of loss realized from the sale of
$500 million of consumer installment loans as part of our balance
sheet optimization initiatives in Q3 2022, which included the
write-off of deferred origination costs and other
transaction-related expenses, a $7.5 million gain from a
court-approved settlement with a third party PPP service provider
in Q4 2022 and higher commercial lease income and loan fees from
continued growth. These increases were partially offset by higher
losses realized from the sale of investment securities of $14.8
million to rebalance the investment portfolio with higher
interest-earning securities and lower bank-owned life insurance
income primarily due to death benefits received in Q3 2022.
Non-interest income totaled $7.3 million for Q4 2022, a decrease
of $9.6 million compared to Q4 2021. The decrease was primarily due
to lower gains realized from the sales of SBA and other loans,
higher losses realized from the sale of investment securities of
$16.9 million to rebalance the investment portfolio with higher
interest-earning securities and lower mortgage warehouse
transactional fees in Q4 2022 compared to Q4 2021 from lower
housing activity due to rising interest rates, offset partially by
$7.5 million of the gain from a court-approved settlement with a
third party PPP service provider in Q4 2022 and higher commercial
lease income and loan fees from continued growth.
Non-Interest Expense
The following table presents details of non-interest expense for
the periods indicated:
Three Months Ended
Increase (Decrease)
Three Months Ended
Increase (Decrease)
(Dollars in thousands)
December 31, 2022
September 30, 2022
December 31, 2022
December 31, 2021
Salaries and employee benefits
$
29,194
$
31,230
$
(2,036
)
$
29,194
$
29,940
$
(746
)
Technology, communication and bank
operations
18,604
19,588
(984
)
18,604
22,657
(4,053
)
Professional services
6,825
6,269
556
6,825
7,058
(233
)
Occupancy
3,672
2,605
1,067
3,672
4,336
(664
)
Commercial lease depreciation
6,518
5,966
552
6,518
4,625
1,893
FDIC assessments, non-income taxes and
regulatory fees
2,339
2,528
(189
)
2,339
2,427
(88
)
Loan servicing
4,460
3,851
609
4,460
4,361
99
Loan workout
714
217
497
714
226
488
Advertising and promotion
1,111
762
349
1,111
344
767
Other
4,982
3,182
1,800
4,982
5,574
(592
)
Total non-interest expense
$
78,419
$
76,198
$
2,221
$
78,419
$
81,548
$
(3,129
)
The management of non-interest expenses remains a priority for
us. However, this will not be at the expense of not making adequate
investments with new technologies to support efficient and
responsible growth.
Non-interest expenses totaled $78.4 million in Q4 2022, $2.2
million higher than Q3 2022. The increase was primarily
attributable to increases of $1.1 million in occupancy mostly due
to increased lease related expenses, $0.6 million in loan servicing
for consumer installment loans, $0.6 million in professional fees
primarily for legal fees associated with a settlement with a third
party SBA service provider, $0.6 million in commercial lease
depreciation from continued growth in our equipment finance
business, $0.5 million in loan workout related legal fees mostly
related to a commercial mortgage warehouse borrower that filed for
bankruptcy and $1.8 million in other non-interest expenses
primarily associated with our team members' return to office and
increases in business development related expenses and charitable
contributions. These increases were offset partially by decreases
in salaries and employee benefits of $2.0 million primarily due to
lower headcount and incentives, $1.4 million in one-time severance
expenses recorded in Q3 2022 and $1.0 million in technology,
processing and deposit servicing-related expenses mostly due to
lower deposit servicing fees paid to BM Technologies offset by
higher software licenses and fees paid for software as a
service.
Non-interest expenses totaled $78.4 million in Q4 2022, a
decrease of $3.1 million compared to Q4 2021. The decrease was
primarily attributable to decreases of $4.1 million in technology,
processing and deposit servicing-related expenses mostly due to
lower deposit servicing and interchange maintenance fees paid to BM
Technologies, $0.7 million in salaries and employee benefits
primarily due to lower incentives and $0.7 million in occupancy
primarily due to expenses associated with the relocation of the
Bank headquarters recorded in Q4 2021. These decreases were offset
in part by increases of $1.9 million in commercial lease
depreciation from continued growth and $0.8 million in advertising
and promotion due to higher spending on media for our deposit
products.
Taxes
Income tax expense from continuing operations decreased by $10.8
million to $7.1 million in Q4 2022 from $17.9 million in Q3 2022
primarily due to lower pre-tax income and increased investment tax
credits.
Income tax expense from continuing operations decreased by $5.9
million to $7.1 million in Q4 2022 from $13.0 million in Q4 2021
primarily due to lower pre-tax income, partially offset by reduced
investment tax credits.
The effective tax rate from continuing operations for Q4 2022
was 19.9% and 21.7% for the twelve months ended December 31, 2022.
Customers expects the full-year 2023 effective tax rate from
continuing operations to be approximately 22% to 24%.
Outlook
“Looking ahead, we expect to moderate growth as we optimize the
balance sheet, further build out our deposit franchise, maximize
our efficiency ratio with prudent expense management, and actively
buy back common shares to the extent we remain trading below book
value. We expect 2023 core loan growth to be in the low-to-mid
single digits with tighter margins in the first half of 2023 and
wider margins in the second half of 2023. Deposits are expected to
remain relatively flat with a focus on reducing high cost deposits.
Full year 2023 net interest margin is expected to be between 2.85%
- 3.05%. 2023 Core EPS (excluding PPP) is expected to be between
$6.00 - $6.25 with a return on common equity of over 15%. Core non
interest expense (excluding BM Technologies expense) is expected to
increase between 8% - 10% in 2023 and we are targeting a CET 1
ratio of approximately 9.5%. We are focused on improving the
quality of our balance sheet and deposit franchise, improving our
net interest margin, and achieving a book value in excess of $45 by
year-end 2023. Customers Bancorp stock at the close of business on
January 20, 2023 was trading at $31.12, only 0.8 times tangible
book value* at December 31, 2022,” concluded Mr. Sam Sidhu.
* Non-GAAP measure. Customers' reasons for
the use of the non-GAAP measure and a detailed reconciliation
between the non-GAAP measure and the comparable GAAP amount are
included at the end of this document.
Webcast
Date:
Thursday, January 26, 2023
Time:
9:00 AM EDT
The live audio webcast, presentation slides, and earnings press
release will be made available at
https://www.customersbank.com/investor-relations/ and at the
Customers Bancorp 4th Quarter Earnings Webcast.
You may submit questions in advance of the live webcast by
emailing our Communications Director, David Patti at
dpatti@customersbank.com; questions may also be asked during the
webcast through the webcast application.
The webcast will be archived for viewing on the Customers Bank
Investor Relations page and available beginning approximately two
hours after the conclusion of the live event.
Institutional Background
Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s
top-performing banking companies with over $20 billion in assets,
making it one of the 100 largest bank holding companies in the US.
Through its primary subsidiary, Customers Bank, commercial and
consumer clients benefit from a full suite of technology-enabled
tailored product experience delivered by best-in-class customer
service. A pioneer in Banking-as-a-Service and digital banking
products, Customers Bank is one of the very few banks that provides
a blockchain-based 24/7/365 digital payment solution. In addition
to traditional lines such as C&I lending, commercial real
estate lending, and multifamily lending, Customers Bank also
provides a number of national corporate banking services for Fund
Finance, Equipment Finance, Financial Institutions, Technology and
Venture, and Healthcare clients. Major accolades include:
- #3 top-performing bank with over $10 billion in assets at
year-end 2021 per S&P Global S&P Global Market
Intelligence,
- #6 in top-performing banks with assets between $10 billion and
$50 billion in 2021 per American Banker, and
- #21 out of the 100 largest publicly traded banks in 2022 per
Forbes.
A member of the Federal Reserve System with deposits insured by
the Federal Deposit Insurance Corporation, Customers Bank is an
equal opportunity lender. Learn more: 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: the impact of the ongoing pandemic on the U.S. economy
and customer behavior, the impact that changes in the economy have
on the performance of our loan and lease portfolio, the market
value of our investment securities, the continued success and
acceptance of our blockchain payments system, the demand for our
products and services and the availability of sources of funding,
the effects of actions by the federal government, including the
Board of Governors of the Federal Reserve System and other
government agencies, that affect market interest rates and the
money supply, actions that we and our customers take in response to
these developments and the effects such actions have on our
operations, products, services and customer relationships, higher
inflation and its impacts, and the effects of any changes in
accounting standards or policies. Customers Bancorp, Inc. cautions
that the foregoing factors are not exclusive, and neither such
factors nor any such forward-looking statement takes into account
the impact of any future events. All forward-looking statements and
information set forth herein are based on management’s current
beliefs and assumptions as of the date hereof and speak only as of
the date they are made. For a more complete discussion of the
assumptions, risks and uncertainties related to our business, you
are encouraged to review Customers Bancorp, Inc.’s filings with the
Securities and Exchange Commission, including its most recent
annual report on Form 10-K for the year ended December 31, 2021,
subsequently filed quarterly reports on Form 10-Q and current
reports on Form 8-K, including any amendments thereto, that update
or provide information in addition to the information included in
the Form 10-K and Form 10-Q filings, if any. Customers Bancorp,
Inc. does not undertake to update any forward-looking statement
whether written or oral, that may be made from time to time by
Customers Bancorp, Inc. or by or on behalf of Customers Bank,
except as may be required under applicable law.
Q4 2022 Overview
The following table presents a summary of key earnings and
performance metrics for the quarter ended December 31, 2022 and the
preceding four quarters, and full year 2022 and 2021:
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
EARNINGS SUMMARY - UNAUDITED
(Dollars in thousands, except per share
data and stock price data)
Q4
Q3
Q2
Q1
Q4
Twelve Months Ended December
31,
2022
2022
2022
2021
2021
2022
2021
GAAP Profitability Metrics:
Net income available to common
shareholders
(from continuing and discontinued
operations)
$
25,623
$
61,364
$
56,519
$
74,896
$
98,647
$
218,402
$
300,134
Per share amounts:
Earnings per share - basic
$
0.79
$
1.89
$
1.73
$
2.27
$
3.02
$
6.69
$
9.29
Earnings per share - diluted
$
0.77
$
1.85
$
1.68
$
2.18
$
2.87
$
6.51
$
8.91
Book value per common share (1)
$
39.08
$
38.46
$
37.46
$
37.61
$
37.32
$
39.08
$
37.32
CUBI stock price (1)
$
28.34
$
29.48
$
33.90
$
52.14
$
65.37
$
28.34
$
65.37
CUBI stock price as % of book value
(1)
73
%
77
%
90
%
139
%
175
%
73
%
175
%
Average shares outstanding - basic
32,413,459
32,455,814
32,712,616
32,957,033
32,625,960
32,632,751
32,312,262
Average shares outstanding - diluted
33,075,422
33,226,607
33,579,013
34,327,065
34,320,327
33,547,706
33,697,547
Shares outstanding (1)
32,373,697
32,475,502
32,449,486
32,957,847
32,913,267
32,373,697
32,913,267
Return on average assets ("ROAA")
0.55
%
1.24
%
1.17
%
1.63
%
2.08
%
1.13
%
1.64
%
Return on average common equity
("ROCE")
8.05
%
19.33
%
18.21
%
24.26
%
33.18
%
17.40
%
28.75
%
Net interest margin, tax equivalent
2.67
%
3.16
%
3.39
%
3.60
%
4.14
%
3.19
%
3.70
%
Efficiency ratio
49.20
%
50.00
%
42.14
%
39.42
%
38.70
%
44.81
%
40.38
%
Non-GAAP Profitability Metrics
(2):
Core earnings
$
39,368
$
82,270
$
59,367
$
75,410
$
101,213
$
256,415
$
344,700
Adjusted pre-tax pre-provision net
income
$
81,377
$
100,994
$
105,692
$
112,649
$
130,595
$
400,712
$
471,046
Per share amounts:
Core earnings per share - diluted
$
1.19
$
2.48
$
1.77
$
2.20
$
2.95
$
7.63
$
10.23
Tangible book value per common share
(1)
$
38.97
$
38.35
$
37.35
$
37.50
$
37.21
$
38.97
$
37.21
CUBI stock price as % of tangible book
value (1)
73
%
77
%
91
%
139
%
176
%
73
%
176
%
Core ROAA
0.81
%
1.64
%
1.23
%
1.64
%
2.13
%
1.32
%
1.86
%
Core ROCE
12.36
%
25.91
%
19.13
%
24.43
%
34.04
%
20.43
%
33.02
%
Adjusted ROAA - pre-tax and
pre-provision
1.56
%
1.95
%
2.11
%
2.39
%
2.70
%
1.99
%
2.45
%
Adjusted ROCE - pre-tax and
pre-provision
24.59
%
31.01
%
33.37
%
35.89
%
43.25
%
31.16
%
44.00
%
Net interest margin, tax equivalent,
excluding PPP
2.87
%
3.18
%
3.32
%
3.32
%
3.12
%
3.16
%
3.16
%
Core efficiency ratio
49.12
%
42.57
%
41.74
%
39.47
%
38.14
%
43.02
%
37.54
%
Asset Quality:
Net charge-offs
$
27,164
$
18,497
$
13,481
$
7,226
$
7,582
$
66,368
$
33,798
Annualized net charge-offs to average
total loans and leases
0.70
%
0.47
%
0.36
%
0.21
%
0.21
%
0.45
%
0.22
%
Non-performing loans ("NPLs") to total
loans and leases (1)
0.19
%
0.18
%
0.18
%
0.31
%
0.34
%
0.19
%
0.34
%
Reserves to NPLs (1)
425.95
%
466.34
%
557.76
%
333.15
%
277.72
%
425.95
%
277.72
%
Non-performing assets ("NPAs") to total
assets
0.15
%
0.14
%
0.14
%
0.23
%
0.25
%
0.15
%
0.25
%
Customers Bank Capital Ratios
(3):
Common equity Tier 1 capital to
risk-weighted assets
11.07
%
11.42
%
11.46
%
11.60
%
11.83
%
11.07
%
11.83
%
Tier 1 capital to risk-weighted assets
11.07
%
11.42
%
11.46
%
11.60
%
11.83
%
11.07
%
11.83
%
Total capital to risk-weighted assets
12.24
%
12.65
%
12.91
%
13.03
%
13.11
%
12.24
%
13.11
%
Tier 1 capital to average assets (leverage
ratio)
8.15
%
8.10
%
8.09
%
8.21
%
7.93
%
8.15
%
7.93
%
(1) Metric is a spot balance for the last
day of each quarter presented.
(2) Customers' reasons for the use of
these non-GAAP measures and a detailed reconciliation between the
non-GAAP measures and the comparable GAAP amounts are included at
the end of this document.
(3) Regulatory capital ratios are
estimated for Q4 2022 and actual for the remaining periods. In
accordance with regulatory capital rules, Customers elected to
apply the CECL capital transition provisions which delayed the
effects of CECL on regulatory capital for two years until January
1, 2022, followed by a three-year transition period. The cumulative
CECL capital transition impact as of December 31, 2021 which
amounted to $61.6 million will be phased in at 25% per year
beginning on January 1, 2022 through December 31, 2024. As of
December 31, 2022, our regulatory capital ratios reflected 75%, or
$46.2 million, benefit associated with the CECL transition
provisions.
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS -
UNAUDITED
(Dollars in thousands, except per share
data)
Twelve Months Ended
Q4
Q3
Q2
Q1
Q4
December 31,
2022
2022
2022
2022
2021
2022
2021
Interest income:
Loans and leases
$
218,740
$
200,457
$
168,941
$
157,175
$
198,000
$
745,313
$
736,822
Investment securities
42,953
30,546
25,442
20,295
15,202
119,236
40,413
Interest earning deposits
6,754
2,949
919
330
604
10,952
1,585
Other
1,200
1,964
1,032
5,676
231
9,872
2,064
Total interest income
269,647
235,916
196,334
183,476
214,037
885,373
780,884
Interest expense:
Deposits
124,366
65,380
22,781
13,712
15,415
226,239
62,641
FHLB advances
4,464
4,684
2,316
—
51
11,464
6,211
Subordinated debt
2,688
2,689
2,689
2,689
2,688
10,755
10,755
FRB PPP liquidity facility and other
borrowings
2,992
4,131
3,696
2,376
2,189
13,195
16,203
Total interest expense
134,510
76,884
31,482
18,777
20,343
261,653
95,810
Net interest income
135,137
159,032
164,852
164,699
193,694
623,720
685,074
Provision (benefit) for credit losses
28,216
(7,994
)
23,847
15,997
13,890
60,066
27,426
Net interest income after provision
(benefit) for credit losses
106,921
167,026
141,005
148,702
179,804
563,654
657,648
Non-interest income:
Interchange and card revenue
71
72
24
76
84
243
336
Deposit fees
958
989
964
940
1,026
3,851
3,774
Commercial lease income
8,135
7,097
6,592
5,895
5,378
27,719
21,107
Bank-owned life insurance
1,975
3,449
1,947
8,326
1,984
15,697
8,416
Mortgage warehouse transactional fees
1,295
1,545
1,883
2,015
2,262
6,738
12,874
Gain (loss) on sale of SBA and other
loans
—
106
1,542
1,507
2,493
3,155
11,327
Loss on sale of consumer installment
loans
—
(23,465
)
—
—
—
(23,465
)
—
Loan fees
4,017
3,008
2,618
2,545
2,513
12,188
7,527
Mortgage banking income
90
125
173
481
262
869
1,536
Gain (loss) on sale of investment
securities
(16,937
)
(2,135
)
(3,029
)
(1,063
)
(49
)
(23,164
)
31,392
Unrealized gain (loss) on investment
securities
28
(259
)
(203
)
(276
)
—
(710
)
2,720
Loss on sale of foreign subsidiaries
—
—
—
—
—
—
(2,840
)
Unrealized gain (loss) on derivatives
43
563
821
964
586
2,391
3,208
Loss on cash flow hedge derivative
terminations
—
—
—
—
—
—
(24,467
)
Legal settlement gain
7,519
—
—
—
—
7,519
—
Other
151
(112
)
(586
)
(212
)
452
(759
)
957
Total non-interest income
7,345
(9,017
)
12,746
21,198
16,991
32,272
77,867
Non-interest expense:
Salaries and employee benefits
29,194
31,230
25,334
26,607
29,940
112,365
108,202
Technology, communication and bank
operations
18,604
19,588
22,738
24,068
22,657
84,998
83,544
Professional services
6,825
6,269
7,415
6,956
7,058
27,465
26,688
Occupancy
3,672
2,605
4,279
3,050
4,336
13,606
12,143
Commercial lease depreciation
6,518
5,966
5,552
4,942
4,625
22,978
17,824
FDIC assessments, non-income taxes and
regulatory fees
2,339
2,528
1,619
2,383
2,427
8,869
10,061
Loan servicing
4,460
3,851
4,341
2,371
4,361
15,023
10,763
Merger and acquisition related
expenses
—
—
—
—
—
—
418
Loan workout
714
217
179
(38
)
226
1,072
265
Advertising and promotion
1,111
762
353
315
344
2,541
1,520
Deposit relationship adjustment fees
—
—
—
—
—
—
6,216
Other
4,982
3,182
4,395
3,153
5,574
15,712
16,663
Total non-interest expense
78,419
76,198
76,205
73,807
81,548
304,629
294,307
Income before income tax expense
35,847
81,811
77,546
96,093
115,247
291,297
441,208
Income tax expense
7,136
17,899
18,896
19,332
12,993
63,263
86,940
Net income from continuing
operations
$
28,711
$
63,912
$
58,650
$
76,761
$
102,254
$
228,034
$
354,268
Twelve Months Ended
Q4
Q3
Q2
Q1
Q4
December 31,
2022
2022
2022
2022
2021
2022
2021
Loss from discontinued operations before
income taxes
$
—
$
—
$
—
$
—
$
—
$
—
$
(20,354
)
Income tax expense (benefit) from
discontinued operations
—
—
—
—
1,585
—
19,267
Net loss from discontinued operations
—
—
—
—
(1,585
)
—
(39,621
)
Net income
28,711
63,912
58,650
76,761
100,669
228,034
314,647
Preferred stock dividends
3,088
2,548
2,131
1,865
2,022
9,632
11,693
Loss on redemption of preferred
stock
—
—
—
—
—
—
2,820
Net income available to common
shareholders
$
25,623
$
61,364
$
56,519
$
74,896
$
98,647
$
218,402
$
300,134
Basic earnings per common share from
continuing operations
$
0.79
$
1.89
$
1.73
$
2.27
$
3.07
$
6.69
$
10.51
Basic earnings per common share
0.79
1.89
1.73
2.27
3.02
6.69
9.29
Diluted earnings per common share from
continuing operations
0.77
1.85
1.68
2.18
2.92
6.51
10.08
Diluted earnings per common share
0.77
1.85
1.68
2.18
2.87
6.51
8.91
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEET -
UNAUDITED
(Dollars in thousands)
December 31,
September 30,
June 30,
March 31,
December 31,
2022
2022
2022
2022
2021
ASSETS
Cash and due from banks
$
58,025
$
41,520
$
66,703
$
55,515
$
35,238
Interest earning deposits
397,781
362,945
178,475
219,085
482,794
Cash and cash equivalents
455,806
404,465
245,178
274,600
518,032
Investment securities, at fair value
2,987,500
2,943,694
3,144,882
4,169,853
3,817,150
Investment securities held to maturity
840,259
886,294
495,039
—
—
Loans held for sale
328,312
5,224
6,595
3,003
16,254
Loans receivable, mortgage warehouse, at
fair value
1,323,312
1,569,090
1,874,603
1,755,758
2,284,325
Loans receivable, PPP
998,153
1,154,632
1,570,160
2,195,902
3,250,008
Loans and leases receivable
13,144,894
12,607,742
12,212,995
10,118,855
9,018,298
Allowance for credit losses on loans and
leases
(130,924
)
(130,197
)
(156,530
)
(145,847
)
(137,804
)
Total loans and leases receivable, net of
allowance for credit losses on loans and leases
15,335,435
15,201,267
15,501,228
13,924,668
14,414,827
FHLB, Federal Reserve Bank, and other
restricted stock
74,196
64,112
74,626
54,553
64,584
Accrued interest receivable
123,374
107,621
98,727
94,669
92,239
Bank premises and equipment, net
9,025
6,610
6,755
8,233
8,890
Bank-owned life insurance
338,441
336,130
335,153
332,239
333,705
Goodwill and other intangibles
3,629
3,629
3,629
3,678
3,736
Other assets
400,135
408,575
340,184
298,212
305,611
Total assets
$
20,896,112
$
20,367,621
$
20,251,996
$
19,163,708
$
19,575,028
LIABILITIES AND SHAREHOLDERS'
EQUITY
Demand, non-interest bearing deposits
$
1,885,045
$
2,993,793
$
4,683,030
$
4,594,428
$
4,459,790
Interest bearing deposits
16,271,908
14,528,645
12,261,689
11,821,132
12,318,134
Total deposits
18,156,953
17,522,438
16,944,719
16,415,560
16,777,924
Federal funds purchased
—
365,000
770,000
700,000
75,000
FHLB advances
800,000
500,000
635,000
—
700,000
Other borrowings
123,580
123,515
123,450
223,230
223,086
Subordinated debt
181,952
181,882
181,812
181,742
181,673
Accrued interest payable and other
liabilities
230,666
287,855
243,625
265,770
251,128
Total liabilities
19,493,151
18,980,690
18,898,606
17,786,302
18,208,811
Preferred stock
137,794
137,794
137,794
137,794
137,794
Common stock
35,012
34,948
34,922
34,882
34,722
Additional paid in capital
551,721
549,066
545,670
542,402
542,391
Retained earnings
924,134
898,511
837,147
780,628
705,732
Accumulated other comprehensive income
(loss), net
(163,096
)
(156,126
)
(124,881
)
(62,548
)
(4,980
)
Treasury stock, at cost
(82,604
)
(77,262
)
(77,262
)
(55,752
)
(49,442
)
Total shareholders' equity
1,402,961
1,386,931
1,353,390
1,377,406
1,366,217
Total liabilities and shareholders'
equity
$
20,896,112
$
20,367,621
$
20,251,996
$
19,163,708
$
19,575,028
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST
MARGIN - UNAUDITED
(Dollars in thousands)
Three Months Ended
December 31, 2022
September 30, 2022
December 31, 2021
Average Balance
Interest Income or
Expense
Average Yield or Cost
(%)
Average Balance
Interest Income or
Expense
Average Yield or Cost
(%)
Average Balance
Interest Income or
Expense
Average Yield or Cost
(%)
Assets
Interest earning deposits
$
693,563
$
6,754
3.86
%
$
528,001
$
2,949
2.22
%
$
1,568,510
$
604
0.15
%
Investment securities (1)
4,061,555
42,953
4.23
%
3,770,922
30,546
3.24
%
2,621,844
15,202
2.32
%
Loans and leases:
Commercial & industrial:
Specialty lending loans and leases (2)
5,529,567
90,885
6.52
%
5,064,730
64,753
5.07
%
2,206,910
19,998
3.60
%
Other commercial & industrial loans
(2)
1,670,000
22,796
5.42
%
1,585,136
18,794
4.70
%
1,307,276
12,905
3.92
%
Commercial loans to mortgage companies
1,376,760
17,701
5.10
%
1,623,624
17,092
4.18
%
2,289,061
17,425
3.02
%
Multifamily loans
2,235,885
22,481
3.99
%
2,206,953
20,427
3.67
%
1,327,732
12,462
3.72
%
Loans receivable, PPP
1,065,919
7,249
2.70
%
1,349,403
14,666
4.31
%
3,898,607
82,086
8.35
%
Non-owner occupied commercial real estate
loans
1,430,420
18,536
5.14
%
1,372,244
15,595
4.51
%
1,334,184
12,793
3.80
%
Residential mortgages
524,344
5,462
4.13
%
513,694
5,008
3.87
%
314,551
2,919
3.68
%
Installment loans
1,555,108
33,630
8.58
%
1,938,199
44,122
9.03
%
1,657,049
37,412
8.96
%
Total loans and leases (3)
15,388,003
218,740
5.64
%
15,653,983
200,457
5.08
%
14,335,370
198,000
5.48
%
Other interest-earning assets
67,907
1,200
7.01
%
68,549
1,964
11.37
%
50,709
231
1.81
%
Total interest-earning assets
20,211,028
269,647
5.30
%
20,021,455
235,916
4.68
%
18,576,433
214,037
4.57
%
Non-interest-earning assets
506,334
492,911
637,808
Total assets
$
20,717,362
$
20,514,366
$
19,214,241
Liabilities
Interest checking accounts
8,536,962
70,041
3.26
%
6,669,787
33,685
2.00
%
5,258,982
7,676
0.58
%
Money market deposit accounts
3,094,206
21,220
2.72
%
5,789,991
24,348
1.67
%
5,293,529
5,683
0.43
%
Other savings accounts
669,466
3,368
2.00
%
625,908
1,818
1.15
%
1,189,899
1,357
0.45
%
Certificates of deposit
3,259,801
29,737
3.62
%
1,141,970
5,529
1.92
%
541,528
699
0.51
%
Total interest-bearing deposits (4)
15,560,435
124,366
3.17
%
14,227,656
65,380
1.82
%
12,283,938
15,415
0.50
%
Federal funds purchased
151,467
1,437
3.76
%
513,011
2,871
2.22
%
815
1
0.15
%
Borrowings
819,032
8,707
4.22
%
874,497
8,633
3.92
%
465,600
4,927
4.20
%
Total interest-bearing
liabilities
16,530,934
134,510
3.23
%
15,615,164
76,884
1.95
%
12,750,353
20,343
0.63
%
Non-interest-bearing deposits (4)
2,514,316
3,245,963
4,817,835
Total deposits and borrowings
19,045,250
2.80
%
18,861,127
1.62
%
17,568,188
0.46
%
Other non-interest-bearing liabilities
271,129
255,735
328,782
Total liabilities
19,316,379
19,116,862
17,896,970
Shareholders' equity
1,400,983
1,397,504
1,317,271
Total liabilities and shareholders'
equity
$
20,717,362
$
20,514,366
$
19,214,241
Net interest income
135,137
159,032
193,694
Tax-equivalent adjustment
342
334
276
Net interest earnings
$
135,479
$
159,366
$
193,970
Interest spread
2.50
%
3.06
%
4.11
%
Net interest margin
2.66
%
3.16
%
4.14
%
Net interest margin tax
equivalent
2.67
%
3.16
%
4.14
%
Net interest margin tax equivalent
excl. PPP (5)
2.87
%
3.18
%
3.12
%
(1) For presentation in this table,
average balances and the corresponding average yields for
investment securities are based upon historical cost, adjusted for
amortization of premiums and accretion of discounts.
(2) Includes owner occupied commercial
real estate loans.
(3) Includes non-accrual loans, the effect
of which is to reduce the yield earned on loans and leases, and
deferred loan fees.
(4) Total costs of deposits (including
interest bearing and non-interest bearing) were 2.73%, 1.48% and
0.36% for the three months ended December 31, 2022, September 30,
2022 and December 31, 2021, respectively.
(5) Non-GAAP tax-equivalent basis, using
an estimated marginal tax rate of 26% for the three months ended
December 31, 2022, September 30, 2022 and December 31, 2021,
presented to approximate interest income as a taxable asset and
excluding net interest income from PPP loans and related
borrowings, along with the related PPP loan balances and PPP fees
receivable from interest-earning assets. Management uses non-GAAP
measures to present historical periods comparable to the current
period presentation. In addition, management believes the use of
these non-GAAP measures provides additional clarity when assessing
Customers’ financial results. These disclosures should not be
viewed as substitutes for results determined to be in accordance
with U.S. GAAP, nor are they necessarily comparable to non-GAAP
performance measures that may be presented by other entities.
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST
MARGIN - UNAUDITED (CONTINUED)
(Dollars in thousands)
Twelve Months Ended
December 31, 2022
December 31, 2021
Average Balance
Interest Income or
Expense
Average Yield or Cost
(%)
Average Balance
Interest Income or
Expense
Average Yield or Cost
(%)
Assets
Interest earning deposits
$
620,071
$
10,952
1.77
%
$
1,169,416
$
1,585
0.14
%
Investment securities (1)
3,992,934
119,236
2.99
%
1,753,649
40,413
2.30
%
Loans and leases:
Commercial & industrial:
Specialty lending loans and leases (2)
4,357,995
218,189
5.01
%
1,723,516
63,656
3.69
%
Other commercial & industrial loans
(2)
1,540,435
69,564
4.52
%
1,344,489
51,536
3.83
%
Commercial loans to mortgage companies
1,682,471
64,413
3.83
%
2,699,300
83,350
3.09
%
Multifamily loans
1,957,672
73,987
3.78
%
1,501,878
56,582
3.77
%
Loans receivable, PPP
1,724,659
79,381
4.60
%
5,108,192
279,158
5.46
%
Non-owner occupied commercial real estate
loans
1,356,086
59,087
4.36
%
1,349,563
51,430
3.81
%
Residential mortgages
492,870
19,048
3.86
%
339,845
12,405
3.65
%
Installment loans
1,798,977
161,644
8.99
%
1,517,165
138,705
9.14
%
Total loans and leases (3)
14,911,165
745,313
5.00
%
15,583,948
736,822
4.73
%
Other interest-earning assets
64,204
9,872
NM (6)
59,308
2,064
3.48
%
Total interest-earning assets
19,588,374
885,373
4.52
%
18,566,321
780,884
4.21
%
Non-interest-earning assets
521,370
633,615
Total assets
$
20,109,744
$
19,199,936
Liabilities
Interest checking accounts
$
6,853,533
$
125,100
1.83
%
$
4,006,354
$
27,605
0.69
%
Money market deposit accounts
4,615,574
57,765
1.25
%
4,933,027
22,961
0.47
%
Other savings accounts
716,838
6,727
0.94
%
1,358,708
7,584
0.56
%
Certificates of deposit
1,352,787
36,647
2.71
%
619,859
4,491
0.72
%
Total interest-bearing deposits (4)
13,538,732
226,239
1.67
%
10,917,948
62,641
0.57
%
Federal funds purchased
349,581
5,811
1.66
%
22,110
16
0.07
%
FRB PPP liquidity facility
—
—
—
%
2,636,925
9,229
0.35
%
Borrowings
792,563
29,603
3.74
%
610,503
23,924
3.92
%
Total interest-bearing
liabilities
14,680,876
261,653
1.78
%
14,187,486
95,810
0.68
%
Non-interest-bearing deposits (4)
3,780,185
3,470,788
Total deposits and borrowings
18,461,061
1.42
%
17,658,274
0.54
%
Other non-interest-bearing liabilities
255,911
304,078
Total liabilities
18,716,972
17,962,352
Shareholders' equity
1,392,772
1,237,584
Total liabilities and shareholders'
equity
$
20,109,744
$
19,199,936
Net interest income
623,720
685,074
Tax-equivalent adjustment
1,185
1,147
Net interest earnings
$
624,905
$
686,221
Interest spread
3.10
%
3.66
%
Net interest margin
3.18
%
3.69
%
Net interest margin tax
equivalent
3.19
%
3.70
%
Net interest margin tax equivalent
excl. PPP (5)
3.16
%
3.16
%
(1) For presentation in this table,
average balances and the corresponding average yields for
investment securities are based upon historical cost, adjusted for
amortization of premiums and accretion of discounts.
(2) Includes owner occupied commercial
real estate loans.
(3) Includes non-accrual loans, the effect
of which is to reduce the yield earned on loans and leases, and
deferred loan fees.
(4) Total costs of deposits (including
interest bearing and non-interest bearing) were 1.31% and 0.44% for
the twelve months ended December 31, 2022 and 2021,
respectively.
(5) Non-GAAP tax-equivalent basis, using
an estimated marginal tax rate of 26% for the twelve months ended
December 31, 2022 and 2021, presented to approximate interest
income as a taxable asset and excluding net interest income from
PPP loans and related borrowings, along with the related PPP loan
balances and PPP fees receivable from interest-earning assets.
Management uses non-GAAP measures to present historical periods
comparable to the current period presentation. In addition,
management believes the use of these non-GAAP measures provides
additional clarity when assessing Customers’ financial results.
These disclosures should not be viewed as substitutes for results
determined to be in accordance with U.S. GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be
presented by other entities.
(6) Not meaningful.
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
PERIOD END LOAN AND LEASE COMPOSITION -
UNAUDITED
(Dollars in thousands)
December 31,
September 30,
June 30,
March 31,
December 31,
2022
2022
2022
2022
2021
Commercial:
Commercial & industrial:
Specialty lending
$
5,412,887
$
5,103,974
$
4,599,640
$
2,973,544
$
2,403,991
Other commercial & industrial
1,135,336
1,064,332
1,037,443
947,895
942,679
Multifamily
2,217,098
2,267,376
2,012,920
1,705,027
1,486,308
Loans to mortgage companies
1,447,919
1,708,587
1,975,189
1,830,121
2,362,438
Commercial real estate owner occupied
885,339
726,670
710,577
701,893
654,922
Loans receivable, PPP
998,153
1,154,632
1,570,160
2,195,902
3,250,008
Commercial real estate non-owner
occupied
1,290,730
1,263,211
1,152,869
1,140,311
1,121,238
Construction
162,009
136,133
195,687
161,024
198,981
Total commercial loans and leases
13,549,471
13,424,915
13,254,485
11,655,717
12,420,565
Consumer:
Residential
498,781
466,888
460,228
469,426
350,984
Manufactured housing
45,076
46,990
48,570
50,669
52,861
Installment:
Personal
1,306,376
1,056,432
1,613,628
1,584,011
1,392,862
Other
394,967
341,463
287,442
313,695
351,613
Total consumer loans
2,245,200
1,911,773
2,409,868
2,417,801
2,148,320
Total loans and leases
$
15,794,671
$
15,336,688
$
15,664,353
$
14,073,518
$
14,568,885
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION -
UNAUDITED
(Dollars in thousands)
December 31,
September 30,
June 30,
March 31,
December 31,
2022
2022
2022
2022
2021
Demand, non-interest bearing
$
1,885,045
$
2,993,793
$
4,683,030
$
4,594,428
$
4,459,790
Demand, interest bearing
8,476,027
7,124,663
6,644,398
5,591,468
6,488,406
Total demand deposits
10,361,072
10,118,456
11,327,428
10,185,896
10,948,196
Savings
811,798
592,002
640,062
802,395
973,317
Money market
2,734,217
4,913,967
4,254,205
4,981,077
4,349,073
Time deposits
4,249,866
1,898,013
723,024
446,192
507,338
Total deposits
$
18,156,953
$
17,522,438
$
16,944,719
$
16,415,560
$
16,777,924
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)
As of December 31,
2022
As of September 30,
2022
As of December 31,
2021
Total loans
Non accrual /NPLs
Allowance for credit
losses
Total NPLs to total
loans
Total reserves to total
NPLs
Total loans
Non accrual /NPLs
Allowance for credit
losses
Total NPLs to total
loans
Total reserves to total
NPLs
Total loans
Non accrual /NPLs
Allowance for credit
losses
Total NPLs to total
loans
Total reserves to total
NPLs
Loan
type
Commercial & industrial, including
specialty lending (1)
$
6,672,830
$
1,761
$
17,582
0.03
%
998.41
%
$
6,307,803
$
4,078
$
15,131
0.06
%
371.04
%
$
3,424,783
$
6,096
$
12,702
0.18
%
208.37
%
Multifamily
2,213,019
1,143
14,541
0.05
%
1272.18
%
2,263,268
1,158
14,244
0.05
%
1230.05
%
1,486,308
22,654
4,477
1.52
%
19.76
%
Commercial real estate owner occupied
885,339
2,768
6,454
0.31
%
233.16
%
726,670
2,198
6,220
0.30
%
282.98
%
654,922
2,475
3,213
0.38
%
129.82
%
Commercial real estate non-owner
occupied
1,290,730
—
11,219
—
%
—
%
1,263,211
—
11,332
—
%
—
%
1,121,238
2,815
6,210
0.25
%
220.60
%
Construction
162,009
—
1,913
—
%
—
%
136,133
—
1,614
—
%
—
%
198,981
—
692
—
%
—
%
Total commercial loans and leases
receivable
11,223,927
5,672
51,709
0.05
%
911.65
%
10,697,085
7,434
48,541
0.07
%
652.96
%
6,886,232
34,040
27,294
0.49
%
80.18
%
Residential
497,952
6,922
6,094
1.39
%
88.04
%
465,772
6,438
5,453
1.38
%
84.70
%
334,730
7,727
2,383
2.31
%
30.84
%
Manufactured housing
45,076
2,410
4,430
5.35
%
183.82
%
46,990
2,584
4,482
5.50
%
173.45
%
52,861
3,563
4,278
6.74
%
120.07
%
Installment
1,377,939
9,527
68,691
0.69
%
721.01
%
1,397,895
6,848
71,721
0.49
%
1047.33
%
1,744,475
3,783
103,849
0.22
%
2745.15
%
Total consumer loans receivable
1,920,967
18,859
79,215
0.98
%
420.04
%
1,910,657
15,870
81,656
0.83
%
514.53
%
2,132,066
15,073
110,510
0.71
%
733.17
%
Loans and leases receivable (1)
13,144,894
24,531
130,924
0.19
%
533.71
%
12,607,742
23,304
130,197
0.18
%
558.69
%
9,018,298
49,113
137,804
0.54
%
280.59
%
Loans receivable, PPP
998,153
—
—
—
%
—
%
1,154,632
—
—
—
%
—
%
3,250,008
—
—
—
%
—
%
Loans receivable, mortgage warehouse,
at fair value
1,323,312
—
—
—
%
—
%
1,569,090
—
—
—
%
—
%
2,284,325
—
—
—
%
—
%
Total loans held for sale
328,312
6,206
—
1.89
%
—
%
5,224
4,615
—
88.34
%
—
%
16,254
507
—
3.12
%
—
%
Total portfolio
$
15,794,671
$
30,737
$
130,924
0.19
%
425.95
%
$
15,336,688
$
27,919
$
130,197
0.18
%
466.34
%
$
14,568,885
$
49,620
$
137,804
0.34
%
277.72
%
(1) Excluding loans receivable, PPP from total loans and leases
receivable is a non-GAAP measure. Management believes the use of
these non-GAAP measures provides additional clarity when assessing
Customers' financial results. These disclosures should not be
viewed as substitutes for results determined to be in accordance
with U.S. GAAP, nor are they necessarily comparable to non-GAAP
performance measures that may be presented by other entities.
Please refer to the reconciliation schedules that follow this
table.
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) -
UNAUDITED
(Dollars in thousands)
Q4
Q3
Q2
Q1
Q4
Twelve Months Ended December
31,
2022
2022
2022
2022
2021
2022
2021
Loan
type
Commercial & industrial, including
specialty lending (1)
$
12,960
$
2,581
$
(416
)
$
(59
)
$
240
$
15,066
$
448
Multifamily
—
—
1,990
(337
)
—
1,653
1,132
Commercial real estate owner occupied
(2
)
—
(42
)
(7
)
66
(51
)
249
Commercial real estate non-owner
occupied
972
4,831
159
(8
)
(14
)
5,954
860
Construction
(10
)
(10
)
(103
)
(113
)
(3
)
(236
)
(125
)
Residential
7
(13
)
(39
)
(2
)
(6
)
(47
)
76
Installment
13,237
11,108
11,932
7,752
7,299
44,029
31,158
Total net charge-offs (recoveries) from
loans held for investment
$
27,164
$
18,497
$
13,481
$
7,226
$
7,582
$
66,368
$
33,798
(1) Includes $11.0 million of one-time charge-offs from certain
loans originated under the PPP program that were subsequently
determined to be ineligible for SBA forgiveness and guarantee and
were deemed uncollectible during the three and twelve months ended
December 31, 2022.
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
MEASURES - UNAUDITED
We believe that the non-GAAP measurements disclosed within this
document are useful for investors, regulators, management and
others to evaluate our core results of operations and financial
condition relative to other financial institutions. These non-GAAP
financial measures are frequently used by securities analysts,
investors, and other interested parties in the evaluation of
companies in our industry. These non-GAAP financial measures
exclude from corresponding GAAP measures the impact of certain
elements that we do not believe are representative of our ongoing
financial results, which we believe enhance an overall
understanding of our performance and increases comparability of our
period to period results. Investors should consider our performance
and financial condition as reported under GAAP and all other
relevant information when assessing our performance or financial
condition. The non-GAAP measures presented are not necessarily
comparable to non-GAAP measures that may be presented by other
financial institutions. Although non-GAAP financial measures are
frequently used in the evaluation of a company, they have
limitations as analytical tools and should not be considered in
isolation or as a substitute for analysis of our results of
operations or financial condition as reported under GAAP.
The following tables present reconciliations of GAAP to non-GAAP
measures disclosed within this document.
Core Earnings - Customers
Bancorp
Twelve Months Ended
December 31,
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
2022
2021
(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
$
25,623
$
0.77
$
61,364
$
1.85
$
56,519
$
1.68
$
74,896
$
2.18
$
98,647
$
2.87
$
218,402
$
6.51
$
300,134
$
8.91
Reconciling items (after tax):
Net loss from discontinued operations
—
—
—
—
—
—
—
—
1,585
0.05
—
—
39,621
1.18
Severance expense
—
—
1,058
0.03
—
—
—
—
—
—
1,058
0.03
1,517
0.05
Impairments on fixed assets and leases
—
—
126
0.00
705
0.02
220
0.01
1,118
0.03
1,051
0.03
1,118
0.03
Merger and acquisition related
expenses
—
—
—
—
—
—
—
—
—
—
—
—
320
0.01
Loss on sale of consumer installment
loans
—
—
18,221
0.55
—
—
—
—
—
—
18,221
0.54
—
—
Legal reserves
—
—
—
—
—
—
—
—
—
—
—
—
897
0.03
(Gains) losses on investment
securities
13,543
0.41
1,859
0.06
2,494
0.07
1,030
0.03
43
0.00
18,926
0.56
(26,015
)
(0.77
)
Loss on sale of foreign subsidiaries
—
—
—
—
—
—
—
—
—
—
—
—
2,150
0.06
Loss on cash flow hedge derivative
terminations
—
—
—
—
—
—
—
—
—
—
—
—
18,716
0.56
Derivative credit valuation adjustment
202
0.01
(358
)
(0.01
)
(351
)
(0.01
)
(736
)
(0.02
)
(180
)
(0.01
)
(1,243
)
(0.04
)
(1,285
)
(0.04
)
Deposit relationship adjustment fees
—
—
—
—
—
—
—
—
—
—
—
—
4,707
0.14
Loss on redemption of preferred stock
—
—
—
—
—
—
—
—
—
—
—
—
2,820
0.08
Core earnings
$
39,368
$
1.19
$
82,270
$
2.48
$
59,367
$
1.77
$
75,410
$
2.20
$
101,213
$
2.95
$
256,415
$
7.63
$
344,700
$
10.23
Core Earnings, excluding PPP -
Customers Bancorp
Twelve Months Ended
December 31,
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
2022
2021
(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
$
25,623
$
0.77
$
61,364
$
1.85
$
56,519
$
1.68
$
74,896
$
2.18
$
98,647
$
2.87
$
218,402
$
6.51
$
300,134
$
8.91
Less: PPP net income (loss) (after
tax)
(5,956
)
(0.18
)
5,846
0.18
13,066
0.39
24,713
0.72
64,323
1.87
37,669
1.12
195,050
5.79
Net income to common shareholders,
excluding PPP
31,579
0.95
55,518
1.67
43,453
1.29
50,183
1.46
34,324
1.00
180,733
5.39
105,084
3.12
Reconciling items (after tax):
Net loss from discontinued operations
—
—
—
—
—
—
—
—
1,585
0.05
—
—
39,621
1.18
Severance expense
—
—
1,058
0.03
—
—
—
—
—
—
1,058
0.03
1,517
0.05
Impairments on fixed assets and leases
—
—
126
0.00
705
0.02
220
0.01
1,118
0.03
1,051
0.03
1,118
0.03
Merger and acquisition related
expenses
—
—
—
—
—
—
—
—
—
—
—
—
320
0.01
Loss on sale of consumer installment
loans
—
—
18,221
0.55
—
—
—
—
—
—
18,221
0.54
—
—
Legal reserves
—
—
—
—
—
—
—
—
—
—
—
—
897
0.03
(Gains) losses on investment
securities
13,543
0.41
1,859
0.06
2,494
0.07
1,030
0.03
43
0.00
18,926
0.56
(26,015
)
(0.77
)
Loss on sale of foreign subsidiaries
—
—
—
—
—
—
—
—
—
—
—
—
2,150
0.06
Loss on cash flow hedge derivative
terminations
—
—
—
—
—
—
—
—
—
—
—
—
18,716
0.56
Derivative credit valuation adjustment
202
0.01
(358
)
(0.01
)
(351
)
(0.01
)
(736
)
(0.02
)
(180
)
(0.01
)
(1,243
)
(0.04
)
(1,285
)
(0.04
)
Deposit relationship adjustment fees
—
—
—
—
—
—
—
—
—
—
—
—
4,707
0.14
Loss on redemption of preferred stock
—
—
—
—
—
—
—
—
—
—
—
—
2,820
0.08
Core earnings, excluding PPP
$
45,324
$
1.37
$
76,424
$
2.30
$
46,301
$
1.38
$
50,697
$
1.48
$
36,890
$
1.07
$
218,746
$
6.51
$
149,650
$
4.44
Core Return on Average Assets -
Customers Bancorp
Twelve Months Ended
December 31,
(Dollars in thousands except per share
data)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
2022
2021
GAAP net income
$
28,711
$
63,912
$
58,650
$
76,761
$
100,669
$
228,034
$
314,647
Reconciling items (after tax):
Net loss from discontinued operations
—
—
—
—
1,585
—
39,621
Severance expense
—
1,058
—
—
—
1,058
1,517
Impairments on fixed assets and leases
—
126
705
220
1,118
1,051
1,118
Merger and acquisition related
expenses
—
—
—
—
—
—
320
Loss on sale of consumer installment
loans
—
18,221
—
—
—
18,221
—
Legal reserves
—
—
—
—
—
—
897
(Gains) losses on investment
securities
13,543
1,859
2,494
1,030
43
18,926
(26,015
)
Loss on sale of foreign subsidiaries
—
—
—
—
—
—
2,150
Loss on cash flow hedge derivative
terminations
—
—
—
—
—
—
18,716
Derivative credit valuation adjustment
202
(358
)
(351
)
(736
)
(180
)
(1,243
)
(1,285
)
Deposit relationship adjustment fees
—
—
—
—
—
—
4,707
Core net income
$
42,456
$
84,818
$
61,498
$
77,275
$
103,235
$
266,047
$
356,393
Average total assets
$
20,717,362
$
20,514,366
$
20,056,020
$
19,129,330
$
19,214,241
$
20,109,744
$
19,199,936
Core return on average assets
0.81
%
1.64
%
1.23
%
1.64
%
2.13
%
1.32
%
1.86
%
Core Return on Average Assets,
excluding PPP - Customers Bancorp
Twelve Months Ended
December 31,
(Dollars in thousands except per share
data)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
2022
2021
GAAP net income
$
28,711
$
63,912
$
58,650
$
76,761
$
100,669
$
228,034
$
314,647
Less: PPP net income (loss) (after
tax)
(5,956
)
5,846
13,066
24,713
64,323
37,669
195,050
Net income, excluding PPP
34,667
58,066
45,584
52,048
36,346
190,365
119,597
Reconciling items (after tax):
Net loss from discontinued operations
—
—
—
—
1,585
—
39,621
Severance expense
—
1,058
—
—
—
1,058
1,517
Impairments on fixed assets and leases
—
126
705
220
1,118
1,051
1,118
Merger and acquisition related
expenses
—
—
—
—
—
—
320
Loss on sale of consumer installment
loans
—
18,221
—
—
—
18,221
—
Legal reserves
—
—
—
—
—
—
897
(Gains) losses on investment
securities
13,543
1,859
2,494
1,030
43
18,926
(26,015
)
Loss on sale of foreign subsidiaries
—
—
—
—
—
—
2,150
Loss on cash flow hedge derivative
terminations
—
—
—
—
—
—
18,716
Derivative credit valuation adjustment
202
(358
)
(351
)
(736
)
(180
)
(1,243
)
(1,285
)
Deposit relationship adjustment fees
—
—
—
—
—
—
4,707
Core net income, excluding PPP
$
48,412
$
78,972
$
48,432
$
52,562
$
38,912
$
228,378
$
161,343
Average total assets
$
20,717,362
$
20,514,366
$
20,056,020
$
19,129,330
$
19,214,241
$
20,109,744
$
19,199,936
Core return on average assets, excluding
PPP
0.93
%
1.53
%
0.97
%
1.11
%
0.80
%
1.14
%
0.84
%
Adjusted Net Income and Adjusted ROAA -
Pre-Tax Pre-Provision - Customers Bancorp
Twelve Months Ended
December 31,
(Dollars in thousands except per share
data)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
2022
2021
GAAP net income
$
28,711
$
63,912
$
58,650
$
76,761
$
100,669
$
228,034
$
314,647
Reconciling items:
Income tax expense
7,136
17,899
18,896
19,332
12,993
63,263
86,940
Provision (benefit) for credit losses
28,216
(7,994
)
23,847
15,997
13,890
60,066
27,426
Provision (benefit) for credit losses on
unfunded commitments
153
254
608
(109
)
352
906
(220
)
Severance expense
—
1,363
—
—
—
1,363
2,004
Net loss from discontinued operations
—
—
—
—
1,585
—
39,621
Impairments on fixed assets and leases
—
162
914
286
1,260
1,362
1,260
Merger and acquisition related
expenses
—
—
—
—
—
—
418
Loss on sale of consumer installment
loans
—
23,465
—
—
—
23,465
—
Legal reserves
—
—
—
—
—
—
1,185
(Gains) losses on investment
securities
16,909
2,394
3,232
1,339
49
23,874
(34,112
)
Loss on sale of foreign subsidiaries
—
—
—
—
—
—
2,840
Loss on cash flow hedge derivative
terminations
—
—
—
—
—
—
24,467
Derivative credit valuation adjustment
252
(461
)
(455
)
(957
)
(203
)
(1,621
)
(1,646
)
Deposit relationship adjustment fees
—
—
—
—
—
—
6,216
Adjusted net income - pre-tax
pre-provision
$
81,377
$
100,994
$
105,692
$
112,649
$
130,595
$
400,712
$
471,046
Average total assets
$
20,717,362
$
20,514,366
$
20,056,020
$
19,129,330
$
19,214,241
$
20,109,744
$
19,199,936
Adjusted ROAA - pre-tax pre-provision
1.56
%
1.95
%
2.11
%
2.39
%
2.70
%
1.99
%
2.45
%
Adjusted Net Income and Adjusted ROAA -
Pre-Tax Pre-Provision, excluding PPP - Customers Bancorp
Twelve Months Ended
December 31,
(Dollars in thousands except per share
data)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
2022
2021
GAAP net income
$
28,711
$
63,912
$
58,650
$
76,761
$
100,669
$
228,034
$
314,647
Less: PPP net income (loss) (after
tax)
(5,956
)
5,846
13,066
24,713
64,323
37,669
195,050
Net income, excluding PPP
34,667
58,066
45,584
52,048
36,346
190,365
119,597
Reconciling items:
Income tax expense
7,136
17,899
18,896
19,332
12,993
63,263
86,940
Provision (benefit) for credit losses
28,216
(7,994
)
23,847
15,997
13,890
60,066
27,426
Provision (benefit) for credit losses on
unfunded commitments
153
254
608
(109
)
352
906
(220
)
Severance expense
—
1,363
—
—
—
1,363
2,004
Net loss from discontinued operations
—
—
—
—
1,585
—
39,621
Impairments on fixed assets and leases
—
162
914
286
1,260
1,362
1,260
Merger and acquisition related
expenses
—
—
—
—
—
—
418
Loss on sale of consumer installment
loans
—
23,465
—
—
—
23,465
—
Legal reserves
—
—
—
—
—
—
1,185
(Gains) losses on investment
securities
16,909
2,394
3,232
1,339
49
23,874
(34,112
)
Loss on sale of foreign subsidiaries
—
—
—
—
—
—
2,840
Loss on cash flow hedge derivative
terminations
—
—
—
—
—
—
24,467
Derivative credit valuation adjustment
252
(461
)
(455
)
(957
)
(203
)
(1,621
)
(1,646
)
Deposit relationship adjustment fees
—
—
—
—
—
—
6,216
Adjusted net income - pre-tax
pre-provision, excluding PPP
$
87,333
$
95,148
$
92,626
$
87,936
$
66,272
$
363,043
$
275,996
Average total assets
$
20,717,362
$
20,514,366
$
20,056,020
$
19,129,330
$
19,214,241
$
20,109,744
$
19,199,936
Adjusted ROAA - pre-tax pre-provision,
excluding PPP
1.67
%
1.84
%
1.85
%
1.86
%
1.37
%
1.81
%
1.44
%
Core Return on Average Common Equity -
Customers Bancorp
Twelve Months Ended
December 31,
(Dollars in thousands except per share
data)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
2022
2021
GAAP net income to common shareholders
$
25,623
$
61,364
$
56,519
$
74,896
$
98,647
$
218,402
$
300,134
Reconciling items (after tax):
Net loss from discontinued operations
—
—
—
—
1,585
—
39,621
Severance expense
—
1,058
—
—
—
1,058
1,517
Impairments on fixed assets and leases
—
126
705
220
1,118
1,051
1,118
Merger and acquisition related
expenses
—
—
—
—
—
—
320
Loss on sale of consumer installment
loans
—
18,221
—
—
—
18,221
—
Legal reserves
—
—
—
—
—
—
897
(Gains) losses on investment
securities
13,543
1,859
2,494
1,030
43
18,926
(26,015
)
Loss on sale of foreign subsidiaries
—
—
—
—
—
—
2,150
Loss on cash flow hedge derivative
terminations
—
—
—
—
—
—
18,716
Derivative credit valuation adjustment
202
(358
)
(351
)
(736
)
(180
)
(1,243
)
(1,285
)
Deposit relationship adjustment fees
—
—
—
—
—
—
4,707
Loss on redemption of preferred stock
—
—
—
—
—
—
2,820
Core earnings
$
39,368
$
82,270
$
59,367
$
75,410
$
101,213
$
256,415
$
344,700
Average total common shareholders'
equity
$
1,263,190
$
1,259,711
$
1,244,819
$
1,252,022
$
1,179,478
$
1,254,979
$
1,043,906
Core return on average common equity
12.36
%
25.91
%
19.13
%
24.43
%
34.04
%
20.43
%
33.02
%
Adjusted ROCE - Pre-Tax Pre-Provision -
Customers Bancorp
Twelve Months Ended
December 31,
(Dollars in thousands except per share
data)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
2022
2021
GAAP net income to common shareholders
$
25,623
$
61,364
$
56,519
$
74,896
$
98,647
$
218,402
$
300,134
Reconciling items:
Income tax expense
7,136
17,899
18,896
19,332
12,993
63,263
86,940
Provision (benefit) for credit losses
28,216
(7,994
)
23,847
15,997
13,890
60,066
27,426
Provision (benefit) for credit losses on
unfunded commitments
153
254
608
(109
)
352
906
(220
)
Net loss from discontinued operations
—
—
—
—
1,585
—
39,621
Severance expense
—
1,363
—
—
—
1,363
2,004
Impairments on fixed assets and leases
—
162
914
286
1,260
1,362
1,260
Merger and acquisition related
expenses
—
—
—
—
—
—
418
Loss on sale of consumer installment
loans
—
23,465
—
—
—
23,465
—
Legal reserves
—
—
—
—
—
—
1,185
(Gains) losses on investment
securities
16,909
2,394
3,232
1,339
49
23,874
(34,112
)
Loss on sale of foreign subsidiaries
—
—
—
—
—
—
2,840
Loss on cash flow hedge derivative
terminations
—
—
—
—
—
—
24,467
Derivative credit valuation adjustment
252
(461
)
(455
)
(957
)
(203
)
(1,621
)
(1,646
)
Deposit relationship adjustment fees
—
—
—
—
—
—
6,216
Loss on redemption of preferred stock
—
—
—
—
—
—
2,820
Pre-tax pre-provision adjusted net income
available to common shareholders
$
78,289
$
98,446
$
103,561
$
110,784
$
128,573
$
391,080
$
459,353
Average total common shareholders'
equity
$
1,263,190
$
1,259,711
$
1,244,819
$
1,252,022
$
1,179,478
$
1,254,979
$
1,043,906
Adjusted ROCE - pre-tax pre-provision
24.59
%
31.01
%
33.37
%
35.89
%
43.25
%
31.16
%
44.00
%
Net Interest Margin, Tax Equivalent, excluding PPP -
Customers Bancorp
Twelve Months Ended
December 31,
(Dollars in thousands except per share
data)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
2022
2021
GAAP net interest income
$
135,137
$
159,032
$
164,852
$
164,699
$
193,694
$
623,720
$
685,074
PPP net interest (income) expense
2,791
(9,632
)
(18,946
)
(34,615
)
(78,647
)
(60,402
)
(261,279
)
Tax-equivalent adjustment
342
334
270
239
276
1,185
1,147
Net interest income, tax equivalent,
excluding PPP
$
138,270
$
149,734
$
146,176
$
130,323
$
115,323
$
564,503
$
424,942
GAAP average total interest earning
assets
$
20,211,028
$
20,021,455
$
19,525,936
$
18,572,308
$
18,576,433
$
19,588,374
$
18,566,321
Average PPP loans
(1,065,919
)
(1,349,403
)
(1,863,429
)
(2,641,318
)
(3,898,607
)
(1,724,659
)
(5,108,192
)
Adjusted average total interest earning
assets
$
19,145,109
$
18,672,052
$
17,662,507
$
15,930,990
$
14,677,826
$
17,863,715
$
13,458,129
Net interest margin, tax equivalent,
excluding PPP
2.87
%
3.18
%
3.32
%
3.32
%
3.12
%
3.16
%
3.16
%
Loan Yield, excluding PPP
Twelve Months Ended
December 31,
(Dollars in thousands except per share
data)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
2022
2021
Interest income on loans and leases
$
218,740
$
200,457
$
168,941
$
157,175
$
198,000
$
745,313
$
736,822
PPP interest income
(7,249
)
(14,666
)
(20,572
)
(36,894
)
(82,086
)
(79,381
)
(279,157
)
Interest income on core loans (Loans and
leases, excluding PPP)
$
211,491
$
185,791
$
148,369
$
120,281
$
115,914
$
665,932
$
457,665
Average total loans and leases
$
15,388,003
$
15,653,983
$
14,918,498
$
13,656,991
$
14,335,370
$
14,911,165
$
15,583,948
Average PPP loans
(1,065,919
)
(1,349,403
)
(1,863,429
)
(2,641,318
)
(3,898,607
)
(1,724,659
)
(5,108,192
)
Adjusted average total loans and
leases
$
14,322,084
$
14,304,580
$
13,055,069
$
11,015,673
$
10,436,763
$
13,186,506
$
10,475,756
Loan yield, excluding PPP
5.86
%
5.15
%
4.56
%
4.43
%
4.41
%
5.05
%
4.37
%
Core Efficiency Ratio - Customers
Bancorp
Twelve Months Ended
December 31,
(Dollars in thousands except per share
data)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
2022
2021
GAAP net interest income
$
135,137
$
159,032
$
164,852
$
164,699
$
193,694
$
623,720
$
685,074
GAAP non-interest income
$
7,345
$
(9,017
)
$
12,746
$
21,198
$
16,991
$
32,272
$
77,867
Loss on sale of consumer installment
loans
—
23,465
—
—
—
23,465
—
(Gains) losses on investment
securities
16,909
2,394
3,232
1,339
49
23,874
(34,112
)
Derivative credit valuation adjustment
252
(461
)
(455
)
(957
)
(203
)
(1,621
)
(1,646
)
Loss on cash flow hedge derivative
terminations
—
—
—
—
—
—
24,467
Loss on sale of foreign subsidiaries
—
—
—
—
—
—
2,840
Core non-interest income
24,506
16,381
15,523
21,580
16,837
77,990
69,416
Core revenue
$
159,643
$
175,413
$
180,375
$
186,279
$
210,531
$
701,710
$
754,490
GAAP non-interest expense
$
78,419
$
76,198
$
76,205
$
73,807
$
81,548
$
304,629
$
294,307
Severance expense
—
(1,363
)
—
—
—
(1,363
)
(2,004
)
Impairments on fixed assets and leases
—
(162
)
(914
)
(286
)
(1,260
)
(1,362
)
(1,260
)
Legal reserves
—
—
—
—
—
—
(1,185
)
Merger and acquisition related
expenses
—
—
—
—
—
—
(418
)
Deposit relationship adjustment fees
—
—
—
—
—
—
(6,216
)
Core non-interest expense
$
78,419
$
74,673
$
75,291
$
73,521
$
80,288
$
301,904
$
283,224
Core efficiency ratio (1)
49.12
%
42.57
%
41.74
%
39.47
%
38.14
%
43.02
%
37.54
%
(1) Core efficiency ratio calculated as core non-interest
expense divided by core revenue.
Tangible Common Equity to Tangible
Assets - Customers Bancorp
(Dollars in thousands except per share
data)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
GAAP total shareholders' equity
$
1,402,961
$
1,386,931
$
1,353,390
$
1,377,406
$
1,366,217
Reconciling items:
Preferred stock
(137,794
)
(137,794
)
(137,794
)
(137,794
)
(137,794
)
Goodwill and other intangibles
(3,629
)
(3,629
)
(3,629
)
(3,678
)
(3,736
)
Tangible common equity
$
1,261,538
$
1,245,508
$
1,211,967
$
1,235,934
$
1,224,687
GAAP total assets
$
20,896,112
$
20,367,621
$
20,251,996
$
19,163,708
$
19,575,028
Reconciling items:
Goodwill and other intangibles
(3,629
)
(3,629
)
(3,629
)
(3,678
)
(3,736
)
Tangible assets
$
20,892,483
$
20,363,992
$
20,248,367
$
19,160,030
$
19,571,292
Tangible common equity to tangible
assets
6.04
%
6.12
%
5.99
%
6.45
%
6.26
%
Tangible Common Equity to Tangible
Assets, excluding PPP - Customers Bancorp
(Dollars in thousands except per share
data)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
GAAP total shareholders' equity
$
1,402,961
$
1,386,931
$
1,353,390
$
1,377,406
$
1,366,217
Reconciling items:
Preferred stock
(137,794
)
(137,794
)
(137,794
)
(137,794
)
(137,794
)
Goodwill and other intangibles
(3,629
)
(3,629
)
(3,629
)
(3,678
)
(3,736
)
Tangible common equity
$
1,261,538
$
1,245,508
$
1,211,967
$
1,235,934
$
1,224,687
GAAP total assets
$
20,896,112
$
20,367,621
$
20,251,996
$
19,163,708
$
19,575,028
Loans receivable, PPP
(998,153
)
(1,154,632
)
(1,570,160
)
(2,195,902
)
(3,250,008
)
Total assets, excluding PPP
$
19,897,959
$
19,212,989
$
18,681,836
$
16,967,806
$
16,325,020
Reconciling items:
Goodwill and other intangibles
(3,629
)
(3,629
)
(3,629
)
(3,678
)
(3,736
)
Tangible assets, excluding PPP
$
19,894,330
$
19,209,360
$
18,678,207
$
16,964,128
$
16,321,284
Tangible common equity to tangible assets,
excluding PPP
6.34
%
6.48
%
6.49
%
7.29
%
7.50
%
Tangible Book Value per Common Share -
Customers Bancorp
(Dollars in thousands except share and per
share data)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
GAAP total shareholders' equity
$
1,402,961
$
1,386,931
$
1,353,390
$
1,377,406
$
1,366,217
Reconciling Items:
Preferred stock
(137,794
)
(137,794
)
(137,794
)
(137,794
)
(137,794
)
Goodwill and other intangibles
(3,629
)
(3,629
)
(3,629
)
(3,678
)
(3,736
)
Tangible common equity
$
1,261,538
$
1,245,508
$
1,211,967
$
1,235,934
$
1,224,687
Common shares outstanding
32,373,697
32,475,502
32,449,486
32,957,847
32,913,267
Tangible book value per common share
$
38.97
$
38.35
$
37.35
$
37.50
$
37.21
Core Loans (Total Loans and Leases,
excluding PPP)
(Dollars in thousands except per share
data)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
Total loans and leases
$
15,794,671
$
15,336,688
$
15,664,353
$
14,073,518
$
14,568,885
Loans receivable, PPP
(998,153
)
(1,154,632
)
(1,570,160
)
(2,195,902
)
(3,250,008
)
Core Loans (Loans and leases, excluding
PPP)
$
14,796,518
$
14,182,056
$
14,094,193
$
11,877,616
$
11,318,877
Total Assets, excluding PPP
(Dollars in thousands except per share
data)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
Total assets
$
20,896,112
$
20,367,621
$
20,251,996
$
19,163,708
$
19,575,028
Loans receivable, PPP
(998,153
)
(1,154,632
)
(1,570,160
)
(2,195,902
)
(3,250,008
)
Total assets, excluding PPP
$
19,897,959
$
19,212,989
$
18,681,836
$
16,967,806
$
16,325,020
Coverage of credit loss reserves for
loans and leases held for investment, excluding PPP
(Dollars in thousands except per share
data)
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Q4 2021
Loans and leases receivable
$
14,143,047
$
13,762,374
$
13,783,155
$
12,314,757
$
12,268,306
Loans receivable, PPP
(998,153
)
(1,154,632
)
(1,570,160
)
(2,195,902
)
(3,250,008
)
Loans and leases held for investment,
excluding PPP
$
13,144,894
$
12,607,742
$
12,212,995
$
10,118,855
$
9,018,298
Allowance for credit losses on loans and
leases
$
130,924
$
130,197
$
156,530
$
145,847
$
137,804
Coverage of credit loss reserves for loans
and leases held for investment, excluding PPP
1.00
%
1.03
%
1.28
%
1.44
%
1.53
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230124006134/en/
David W. Patti, Communications Director 610-451-9452
Customers Bancorp (NYSE:CUBI)
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