STOCK TITAN
  1. Home
  2. News
  3. CUBI
  4. Customers Bancorp Reports Results for Second Quarter 2025

Customers Bancorp Reports Results for Second Quarter 2025

Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
Tags
earnings

WEST READING, Pa.--(BUSINESS WIRE)-- Customers Bancorp, Inc. (NYSE:CUBI):

Second Quarter 2025 Highlights

  • Q2 2025 net income available to common shareholders was $55.8 million, or $1.73 per diluted share; ROAA was 1.09% and ROCE was 12.79%.
  • Q2 2025 core earnings*1 were $58.1 million, or $1.80 per diluted share; Core ROAA* was 1.10% and Core ROCE* was 13.32%.
  • Total loans and leases held for investment grew by $319.0 million, or 2.1%, in Q2 2025 from Q1 2025.
  • Total deposits increased by $43.1 million or 0.2% in Q2 2025 from Q1 2025.
  • Q2 2025 net interest margin, tax equivalent (“NIM”) was 3.27%, compared to Q1 2025 NIM of 3.13%, an increase of 14 basis points, primarily due to higher interest income from loan growth.
  • Ratio of non-performing assets to total assets was 0.27% at June 30, 2025 compared to 0.26% at March 31, 2025.
  • Q2 2025 provision for credit losses was $20.8 million compared to $28.3 million in Q1 2025.
  • The allowance for credit losses on loans and leases equaled 518% of non-performing loans at June 30, 2025, compared to 324% at March 31, 2025.
  • CET 1 ratio of 12.0%2 at June 30, 2025, compared to 11.7% at March 31, 2025.
  • TCE / TA ratio* of 7.9% at June 30, 2025, compared to 7.7% at March 31, 2025.
  • Q2 2025 book value per share and tangible book value per share* both grew by approximately $1.50, or 2.7% over Q1 2025, or 11% annualized, with a tangible book value per share* of $56.24 at June 30, 2025.
  • Redeemed all outstanding shares ($57.5 million) of our Series E Preferred Stock on June 16, 2025.

 

 

 

 

 

* 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 loss on redemption of preferred stock of $1.9 million, pre-tax losses on investment securities of $1.8 million, loan program termination fees of $1.0 million and unrealized gain on loans held for sale of $0.3 million.

2 Regulatory capital ratios as of June 30, 2025 are estimates.

CEO Commentary

“We are pleased to share our second quarter results that highlight the company’s continued execution of its strategic priorities and underscore our success in growing franchise value. And importantly, with our customer-centric mindset and commitment to service provided by our extraordinary colleagues, we are here to serve our clients as the business environment continues to evolve,” said Customers Bancorp Chairman and CEO Jay Sidhu.

“In the second quarter, we demonstrated the strength of our unique business model. The impact can be seen in a 14 basis points increase in our net interest margin in Q2 2025 compared to last quarter as we continue to source loans at attractive yields and manage our interest expenses.

Deposit focused teams we have recruited since March 2023 managed $2.4 billion or 13% of total deposits. Enhanced by their efforts, we’ve increased commercial deposit accounts by approximately 60% since year end 2022, adding granular and sticky relationships while significantly lowering our cost of deposits, increasing our non-interest bearing deposits, and driving franchise value. We believe the company is extremely well-positioned to continue to strengthen our deposit franchise, improve our profitability, and maintain our already strong capital ratios,” stated Jay Sidhu.

“Our Q2 2025 GAAP earnings were $55.8 million, or $1.73 per diluted share, and core earnings* were $58.1 million, or $1.80 per diluted share. We maintain a strong liquidity position, with $8.6 billion of liquidity immediately available, which covers approximately 150% of uninsured deposits1 and our loan to deposit ratio was 81%, at June 30, 2025. Total loans and leases held for investment grew by $319.0 million driven by strong commercial loan growth of $360.7 million led by growth in our existing specialized lending verticals. Asset quality remains strong with our NPA ratio at just 0.27% of total assets and reserve levels are robust at 518% of total non-performing loans at the end of Q2 2025. Our exposure to the higher risk commercial real estate office sector is minimal, representing approximately 1% of the loan portfolio. Tangible Book Value per share* grew to $56.24 and our TCE / TA ratio* increased by 20 basis points to 7.9%. This year three new teams have joined the Bank and the recruitment pipeline remains strong. We believe that our unique strategy, the investments we have continued to make, and the exceptional talent across our organization position us strongly for continued success in 2025 and beyond,” Jay Sidhu continued.

 

 

 

 

 

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

1 Uninsured deposits (estimate) of $7.4 billion to be reported on the Bank’s call report, less deposits of $1.6 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $116.0 million.

Financial Highlights

 

 

At or Three Months Ended

 

 

(Dollars in thousands, except per share data)

 

June 30,

2025

 

March 31,

2025

 

Increase (Decrease)

Profitability Metrics:

 

 

 

 

 

 

 

 

Net income available for common shareholders

 

$

55,846

 

 

$

9,523

 

 

$

46,323

 

 

486.4

%

Diluted earnings per share

 

$

1.73

 

 

$

0.29

 

 

$

1.44

 

 

496.6

%

Core earnings*

 

$

58,147

 

 

$

50,002

 

 

$

8,145

 

 

16.3

%

Adjusted core earnings*

 

$

58,147

 

 

$

50,002

 

 

$

8,145

 

 

16.3

%

Core earnings per share*

 

$

1.80

 

 

$

1.54

 

 

$

0.26

 

 

16.9

%

Adjusted core earnings per share*

 

$

1.80

 

 

$

1.54

 

 

$

0.26

 

 

16.9

%

Return on average assets (“ROAA”)

 

 

1.09

%

 

 

0.23

%

 

 

0.86

 

 

 

Core ROAA*

 

 

1.10

%

 

 

0.97

%

 

 

0.13

 

 

 

Adjusted core ROAA*

 

 

1.10

%

 

 

0.97

%

 

 

0.13

 

 

 

Return on average common equity (“ROCE”)

 

 

12.79

%

 

 

2.23

%

 

 

10.56

 

 

 

Core ROCE*

 

 

13.32

%

 

 

11.72

%

 

 

1.60

 

 

 

Adjusted core ROCE*

 

 

13.32

%

 

 

11.72

%

 

 

1.60

 

 

 

Net interest margin, tax equivalent

 

 

3.27

%

 

 

3.13

%

 

 

0.14

 

 

 

Yield on loans (Loan yield)

 

 

6.61

%

 

 

6.57

%

 

 

0.04

 

 

 

Cost of deposits

 

 

2.85

%

 

 

2.82

%

 

 

0.03

 

 

 

Efficiency ratio

 

 

51.23

%

 

 

52.94

%

 

 

(1.71

)

 

 

Core efficiency ratio*

 

 

51.56

%

 

 

52.69

%

 

 

(1.13

)

 

 

Adjusted core efficiency ratio*

 

 

51.56

%

 

 

52.69

%

 

 

(1.13

)

 

 

Balance Sheet Trends:

 

 

 

 

 

 

 

 

Total assets

 

$

22,550,800

 

 

$

22,423,044

 

 

$

127,756

 

 

0.6

%

Total cash and investment securities

 

$

6,234,043

 

 

$

6,424,406

 

 

$

(190,363

)

 

(3.0

)%

Total loans and leases

 

$

15,412,400

 

 

$

15,097,968

 

 

$

314,432

 

 

2.1

%

Non-interest bearing demand deposits

 

$

5,481,065

 

 

$

5,552,605

 

 

$

(71,540

)

 

(1.3

)%

Total deposits

 

$

18,976,018

 

 

$

18,932,925

 

 

$

43,093

 

 

0.2

%

Capital Metrics:

 

 

 

 

 

 

 

 

Common Equity to Total Assets

 

 

7.9

%

 

 

7.7

%

 

 

0.2

 

 

 

Tangible Common Equity to Tangible Assets*

 

 

7.9

%

 

 

7.7

%

 

 

0.2

 

 

 

Book Value per common share

 

$

56.36

 

 

$

54.85

 

 

$

1.51

 

 

2.8

%

Tangible Book Value per common share*

 

$

56.24

 

 

$

54.74

 

 

$

1.50

 

 

2.7

%

Common equity Tier 1 capital ratio (1)

 

 

12.0

%

 

 

11.7

%

 

 

0.3

 

 

 

Total risk based capital ratio (1)

 

 

14.5

%

 

 

14.6

%

 

 

(0.1

)

 

 

 

 

 

 

 

 

 

 

 

(1) Regulatory capital ratios as of June 30, 2025 are estimates.

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

Financial Highlights

 

 

At or Three Months Ended

 

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

 

(Dollars in thousands, except per share data)

 

June 30,

2025

 

June 30,

2024

 

Increase (Decrease)

 

June 30,

2025

 

June 30,

2024

 

Increase (Decrease)

Profitability Metrics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available for common shareholders

 

$

55,846

 

 

$

54,300

 

 

$

1,546

 

 

2.8

%

 

$

65,369

 

 

$

100,226

 

 

$

(34,857

)

 

(34.8

)%

Diluted earnings per share

 

$

1.73

 

 

$

1.66

 

 

$

0.07

 

 

4.2

%

 

$

2.02

 

 

$

3.06

 

 

$

(1.04

)

 

(34.0

)%

Core earnings*

 

$

58,147

 

 

$

48,567

 

 

$

9,580

 

 

19.7

%

 

$

108,149

 

 

$

95,099

 

 

$

13,050

 

 

13.7

%

Adjusted core earnings*

 

$

58,147

 

 

$

48,567

 

 

$

9,580

 

 

19.7

%

 

$

108,149

 

 

$

103,704

 

 

$

4,445

 

 

4.3

%

Core earnings per share*

 

$

1.80

 

 

$

1.49

 

 

$

0.31

 

 

20.8

%

 

$

3.33

 

 

$

2.90

 

 

$

0.43

 

 

14.8

%

Adjusted core earnings per share*

 

$

1.80

 

 

$

1.49

 

 

$

0.31

 

 

20.8

%

 

$

3.33

 

 

$

3.16

 

 

$

0.17

 

 

5.4

%

Return on average assets (“ROAA”)

 

 

1.09

%

 

 

1.11

%

 

 

(0.02

)

 

 

 

 

0.67

%

 

 

1.02

%

 

 

(0.35

)

 

 

Core ROAA*

 

 

1.10

%

 

 

1.00

%

 

 

0.10

 

 

 

 

 

1.04

%

 

 

0.98

%

 

 

0.06

 

 

 

Adjusted core ROAA*

 

 

1.10

%

 

 

1.00

%

 

 

0.10

 

 

 

 

 

1.04

%

 

 

1.06

%

 

 

(0.02

)

 

 

Return on average common equity (“ROCE”)

 

 

12.79

%

 

 

13.85

%

 

 

(1.06

)

 

 

 

 

7.57

%

 

 

12.98

%

 

 

(5.41

)

 

 

Core ROCE*

 

 

13.32

%

 

 

12.39

%

 

 

0.93

 

 

 

 

 

12.53

%

 

 

12.32

%

 

 

0.21

 

 

 

Adjusted core ROCE*

 

 

13.32

%

 

 

12.39

%

 

 

0.93

 

 

 

 

 

12.53

%

 

 

13.43

%

 

 

(0.90

)

 

 

Net interest margin, tax equivalent

 

 

3.27

%

 

 

3.29

%

 

 

(0.02

)

 

 

 

 

3.20

%

 

 

3.20

%

 

 

—

 

 

 

Yield on loans (Loan yield)

 

 

6.61

%

 

 

7.17

%

 

 

(0.56

)

 

 

 

 

6.59

%

 

 

7.11

%

 

 

(0.52

)

 

 

Cost of deposits

 

 

2.85

%

 

 

3.40

%

 

 

(0.55

)

 

 

 

 

2.84

%

 

 

3.43

%

 

 

(0.59

)

 

 

Efficiency ratio

 

 

51.23

%

 

 

51.87

%

 

 

(0.64

)

 

 

 

 

52.06

%

 

 

53.16

%

 

 

(1.10

)

 

 

Core efficiency ratio*

 

 

51.56

%

 

 

53.47

%

 

 

(1.91

)

 

 

 

 

52.11

%

 

 

53.85

%

 

 

(1.74

)

 

 

Adjusted core efficiency ratio*

 

 

51.56

%

 

 

53.47

%

 

 

(1.91

)

 

 

 

 

52.11

%

 

 

50.79

%

 

 

1.32

 

 

 

Balance Sheet Trends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

22,550,800

 

 

$

20,942,975

 

 

$

1,607,825

 

 

7.7

%

 

 

 

 

 

 

 

 

Total cash and investment securities

 

$

6,234,043

 

 

$

6,523,036

 

 

$

(288,993

)

 

(4.4

)%

 

 

 

 

 

 

 

 

Total loans and leases

 

$

15,412,400

 

 

$

13,632,639

 

 

$

1,779,761

 

 

13.1

%

 

 

 

 

 

 

 

 

Non-interest bearing demand

 

$

5,481,065

 

 

$

4,474,862

 

 

$

1,006,203

 

 

22.5

%

 

 

 

 

 

 

 

 

Total deposits

 

$

18,976,018

 

 

$

17,678,093

 

 

$

1,297,925

 

 

7.3

%

 

 

 

 

 

 

 

 

Capital Metrics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity to Total Assets

 

 

7.9

%

 

 

7.7

%

 

 

0.2

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity to Tangible Assets*

 

 

7.9

%

 

 

7.7

%

 

 

0.2

 

 

 

 

 

 

 

 

 

 

 

Book Value per common share

 

$

56.36

 

 

$

50.81

 

 

$

5.55

 

 

10.9

%

 

 

 

 

 

 

 

 

Tangible Book Value per common share*

 

$

56.24

 

 

$

50.70

 

 

$

5.54

 

 

10.9

%

 

 

 

 

 

 

 

 

Common equity Tier 1 capital ratio (1)

 

 

12.0

%

 

 

12.8

%

 

 

(0.8

)

 

 

 

 

 

 

 

 

 

 

Total risk based capital ratio (1)

 

 

14.5

%

 

 

15.8

%

 

 

(1.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Regulatory capital ratios as of June 30, 2025 are estimates.

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

Key Balance Sheet Trends

Loans and Leases

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

 

(Dollars in thousands)

June 30,

2025

 

% of

Total

 

March 31,

2025

 

% of

Total

 

June 30,

2024

 

% of

Total

Loans and Leases Held for Investment

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial:

 

 

 

 

 

 

 

 

 

 

 

Specialized lending

$

6,454,661

 

42.0

%

 

$

6,070,093

 

40.3

%

 

$

5,528,745

 

41.7

%

Other commercial & industrial

 

1,037,684

 

6.8

 

 

 

1,062,933

 

7.0

 

 

 

1,092,146

 

8.2

 

Mortgage finance

 

1,625,764

 

10.6

 

 

 

1,477,896

 

9.8

 

 

 

1,122,812

 

8.5

 

Multifamily

 

2,247,282

 

14.6

 

 

 

2,322,123

 

15.4

 

 

 

2,067,332

 

15.6

 

Commercial real estate owner occupied

 

1,065,006

 

6.9

 

 

 

1,139,126

 

7.6

 

 

 

805,779

 

6.1

 

Commercial real estate non-owner occupied

 

1,497,385

 

9.7

 

 

 

1,438,906

 

9.6

 

 

 

1,202,606

 

9.1

 

Construction

 

98,626

 

0.6

 

 

 

154,647

 

1.0

 

 

 

163,409

 

1.2

 

Total commercial loans and leases

 

14,026,408

 

91.2

 

 

 

13,665,724

 

90.7

 

 

 

11,982,829

 

90.4

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

Residential

 

520,570

 

3.4

 

 

 

496,772

 

3.3

 

 

 

481,503

 

3.6

 

Manufactured housing

 

30,287

 

0.2

 

 

 

31,775

 

0.2

 

 

 

35,901

 

0.3

 

Installment:

 

 

 

 

 

 

 

 

 

 

 

Personal

 

457,728

 

3.0

 

 

 

493,276

 

3.3

 

 

 

474,481

 

3.6

 

Other

 

344,444

 

2.2

 

 

 

372,892

 

2.5

 

 

 

282,201

 

2.1

 

Total installment loans

 

802,172

 

5.2

 

 

 

866,168

 

5.8

 

 

 

756,682

 

5.7

 

Total consumer loans

 

1,353,029

 

8.8

 

 

 

1,394,715

 

9.3

 

 

 

1,274,086

 

9.6

 

Total loans and leases held for investment

$

15,379,437

 

100.0

%

 

$

15,060,439

 

100.0

%

 

$

13,256,915

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Loans Held for Sale

 

 

 

 

 

 

 

 

 

 

 

Residential

$

5,180

 

15.7

%

 

$

1,465

 

3.9

%

 

$

2,684

 

0.7

%

Installment:

 

 

 

 

 

 

 

 

 

 

 

Personal

 

27,682

 

84.0

 

 

 

36,000

 

95.9

 

 

 

125,598

 

33.4

 

Other

 

101

 

0.3

 

 

 

64

 

0.2

 

 

 

247,442

 

65.9

 

Total installment loans

 

27,783

 

84.3

 

 

 

36,064

 

96.1

 

 

 

373,040

 

99.3

 

Total loans held for sale

$

32,963

 

100.0

%

 

$

37,529

 

100.0

%

 

$

375,724

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Total loans and leases portfolio

$

15,412,400

 

 

 

$

15,097,968

 

 

 

$

13,632,639

 

 

Loans and Leases Held for Investment

Loans and leases held for investment were $15.4 billion at June 30, 2025, up $319 million, or 2%, from March 31, 2025. Specialized lending increased by $385 million, or 6% quarter-over-quarter, to $6.5 billion. Mortgage finance loans increased by $148 million, or 10% to $1.6 billion. Non-owner occupied commercial real estate loans increased by $58 million, or 4% to $1.5 billion. These increases were partially offset by decreases in multifamily loans of $75 million, or 3% to $2.2 billion, owner-occupied commercial real estate loans of $74 million, or 7% to $1.1 billion, consumer installment loans of $64 million, or 7% to $802 million and construction loans of $56 million, or 36% to $99 million.

Loans and leases held for investment of $15.4 billion at June 30, 2025 were up $2.1 billion, or 16%, year-over-year. Specialized lending increased by $926 million, or 17% year-over-year. Mortgage finance loans increased by $503 million. Non-owner occupied commercial real estate loans increased by $295 million. Owner-occupied commercial real estate loans increased by $259 million. Multifamily loans increased by $180 million. Consumer installment loans increased $45 million, inclusive of the transfer from loans held for sale in Q1 2025. These increases were partially offset by decreases in construction loans of $65 million and other commercial and industrial loans of $54 million.

Loans Held for Sale

Loans held for sale decreased $5 million quarter-over-quarter, and were $33 million at June 30, 2025.

Allowance for Credit Losses on Loans and Leases

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

 

At or Three Months Ended

 

 

 

At or Three Months Ended

 

 

(Dollars in thousands)

June 30,

2025

 

March 31,

2025

 

Increase

(Decrease)

 

June 30,

2025

 

June 30,

2024

 

Increase

(Decrease)

Allowance for credit losses on loans and leases

$

147,418

 

 

$

141,076

 

 

$

6,342

 

 

$

147,418

 

 

$

132,436

 

 

$

14,982

 

Provision (benefit) for credit losses on loans and leases

$

18,457

 

 

$

21,445

 

 

$

(2,988

)

 

$

18,457

 

 

$

17,851

 

 

$

606

 

Net charge-offs from loans held for investment

$

13,115

 

 

$

17,144

 

 

$

(4,029

)

 

$

13,115

 

 

$

18,711

 

 

$

(5,596

)

Annualized net charge-offs to average loans and leases

 

0.35

%

 

 

0.48

%

 

 

 

 

0.35

%

 

 

0.56

%

 

 

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

 

1.07

%

 

 

1.04

%

 

 

 

 

1.07

%

 

 

1.08

%

 

 

Net charge-offs decreased with $13.1 million in Q2 2025, compared to $17.1 million in Q1 2025, and $18.7 million in Q2 2024.

Provision (benefit) for Credit Losses

 

Three Months Ended

 

 

 

Three Months Ended

 

 

(Dollars in thousands)

June 30,

2025

 

March 31,

2025

 

Increase

(Decrease)

 

June 30,

2025

 

June 30,

2024

 

Increase

(Decrease)

Provision (benefit) for credit losses on loans and leases

$

18,457

 

$

21,445

 

$

(2,988

)

 

$

18,457

 

$

17,851

 

$

606

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

 

2,324

 

 

6,852

 

 

(4,528

)

 

 

2,324

 

 

270

 

 

2,054

Provision for credit losses

 

20,781

 

 

28,297

 

 

(7,516

)

 

 

20,781

 

 

18,121

 

 

2,660

Provision (benefit) for credit losses on unfunded commitments

 

1,594

 

 

1,208

 

 

386

 

 

 

1,594

 

 

1,594

 

 

—

Total provision for credit losses

$

22,375

 

$

29,505

 

$

(7,130

)

 

$

22,375

 

$

19,715

 

$

2,660

The provision for credit losses on loans and leases in Q2 2025 was $18.5 million, compared to $21.4 million in Q1 2025. The lower provision in Q2 2025 was primarily due to lower balances in the consumer installment loan portfolio, partially offset by slight deterioration in macroeconomic forecasts and an increase in commercial loan balances held for investment.

The provision for credit losses on available for sale investment securities in Q2 2025 was $2.3 million, compared to $6.9 million in Q1 2025.

The provision for credit losses on loans and leases in Q2 2025 was $18.5 million, compared to $17.9 million in Q2 2024. The higher provision in Q2 2025 compared to the year ago period was primarily due to slight deterioration in macroeconomic forecasts and an increase in loan balances held for investment.

The provision for credit losses on available for sale investment securities in Q2 2025 was $2.3 million compared to $0.3 million in Q2 2024.

Asset Quality

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

(Dollars in thousands)

June 30,

2025

 

March 31,

2025

 

Increase

(Decrease)

 

June 30,

2025

 

June 30,

2024

 

Increase

(Decrease)

Non-performing assets (“NPAs”):

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual / non-performing loans (“NPLs”)

$

28,443

 

 

$

43,513

 

 

$

(15,070

)

 

$

28,443

 

 

$

47,380

 

 

$

(18,937

)

Non-performing assets

$

60,778

 

 

$

57,960

 

 

$

2,818

 

 

$

60,778

 

 

$

47,444

 

 

$

13,334

 

NPLs to total loans and leases

 

0.18

%

 

 

0.29

%

 

 

 

 

0.18

%

 

 

0.35

%

 

 

Reserves to NPLs

 

518.29

%

 

 

324.22

%

 

 

 

 

518.29

%

 

 

279.52

%

 

 

NPAs to total assets

 

0.27

%

 

 

0.26

%

 

 

 

 

0.27

%

 

 

0.23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases (1) risk ratings:

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases

 

 

 

 

 

 

 

 

 

 

 

Pass

$

12,047,656

 

 

$

11,815,403

 

 

$

232,253

 

 

$

12,047,656

 

 

$

10,500,922

 

 

$

1,546,734

 

Special Mention

 

174,587

 

 

 

189,155

 

 

 

(14,568

)

 

 

174,587

 

 

 

170,014

 

 

 

4,573

 

Substandard

 

256,849

 

 

 

276,018

 

 

 

(19,169

)

 

 

256,849

 

 

 

270,898

 

 

 

(14,049

)

Total commercial loans and leases

 

12,479,092

 

 

 

12,280,576

 

 

 

198,516

 

 

 

12,479,092

 

 

 

10,941,834

 

 

 

1,537,258

 

Consumer loans

 

 

 

 

 

 

 

 

 

 

 

Performing

 

1,209,377

 

 

 

1,242,753

 

 

 

(33,376

)

 

 

1,209,377

 

 

 

1,256,816

 

 

 

(47,439

)

Non-performing

 

20,298

 

 

 

13,803

 

 

 

6,495

 

 

 

20,298

 

 

 

17,270

 

 

 

3,028

 

Total consumer loans

 

1,229,675

 

 

 

1,256,556

 

 

 

(26,881

)

 

 

1,229,675

 

 

 

1,274,086

 

 

 

(44,411

)

Loans and leases receivable (1)

$

13,708,767

 

 

$

13,537,132

 

 

$

171,635

 

 

$

13,708,767

 

 

$

12,215,920

 

 

$

1,492,847

 

(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, loans receivable, installment, 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 an important common denominator: a 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 strong despite a challenging economic and interest rate 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 June 30, 2025 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 $44.9 million. At June 30, 2025, the consumer installment portfolio had the following characteristics: average original FICO score of 739, average debt-to-income of 20% and average borrower income of $106 thousand.

Non-performing loans at June 30, 2025 decreased to 0.18% of total loans and leases, compared to 0.29% at March 31, 2025 and 0.35% at June 30, 2024.

Investment Securities

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

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

(Dollars in thousands)

June 30,

2025

 

March 31,

2025

 

June 30,

2024

Debt securities, available for sale

$

1,846,566

 

$

2,024,437

 

$

2,477,758

Equity securities

 

30,840

 

 

33,118

 

 

33,892

Investment securities, at fair value

 

1,877,406

 

 

2,057,555

 

 

2,511,650

Debt securities, held to maturity

 

853,126

 

 

938,161

 

 

962,799

Total investment securities portfolio

$

2,730,532

 

$

2,995,716

 

$

3,474,449

At June 30, 2025, the AFS debt securities portfolio had a spot yield of 5.78%, an effective duration of approximately 3.0 years, and approximately 23% are variable rate. Additionally, 64% of the AFS securities portfolio was AAA rated at June 30, 2025.

At June 30, 2025, the HTM debt securities portfolio represented only 3.8% of total assets at June 30, 2025, had a spot yield of 3.79% and an effective duration of approximately 4.2 years. Additionally, at June 30, 2025, approximately 54% of the HTM securities were AAA rated and $0.3 billion were credit enhanced asset backed securities with no current expectation of credit losses.

Deposits

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

(Dollars in thousands)

June 30,

2025

 

% of

Total

 

March 31,

2025

 

% of

Total

 

June 30,

2024

 

% of

Total

Demand, non-interest bearing

$

5,481,065

 

28.9

%

 

$

5,552,605

 

29.3

%

 

$

4,474,862

 

25.3

%

Demand, interest bearing

 

4,912,839

 

25.9

 

 

 

5,137,961

 

27.2

 

 

 

5,894,056

 

33.4

 

Total demand deposits

 

10,393,904

 

54.8

 

 

 

10,690,566

 

56.5

 

 

 

10,368,918

 

58.7

 

Savings

 

1,375,072

 

7.2

 

 

 

1,327,854

 

7.0

 

 

 

1,573,661

 

8.9

 

Money market

 

4,206,516

 

22.2

 

 

 

4,057,458

 

21.4

 

 

 

3,539,815

 

20.0

 

Time deposits

 

3,000,526

 

15.8

 

 

 

2,857,047

 

15.1

 

 

 

2,195,699

 

12.4

 

Total deposits

$

18,976,018

 

100.0

%

 

$

18,932,925

 

100.0

%

 

$

17,678,093

 

100.0

%

Total deposits increased $43 million to $19.0 billion at June 30, 2025 as compared to the prior quarter. Money market deposits increased $149 million, or 4%, to $4.2 billion, time deposits increased $143 million, or 5%, to $3.0 billion and savings deposits increased $47 million, or 4%, to $1.4 billion. These increases were offset by decreases in interest bearing demand deposits of $225 million, or 4%, to $4.9 billion, which included the reduction of approximately $187 million of deposits serviced by BM Technologies, Inc. primarily from the transfer of deposits to a new partner bank during the quarter, and non-interest bearing demand deposits of $72 million, or 1%, to $5.5 billion. The total average cost of deposits increased by 3 basis points to 2.85% in Q2 2025 from 2.82% in the prior quarter. Total estimated uninsured deposits were $5.7 billion1, or 30% of total deposits (inclusive of accrued interest) at June 30, 2025 with immediately available liquidity covering approximately 150% of these deposits.

“The planned reduction in deposits serviced by BM Technologies, Inc had an approximately 3 basis point impact on total average cost of deposits and an approximately 6 basis point impact on total interest bearing cost of deposits in the quarter. Adjusting for this impact, total average deposit costs would have been flat and interest bearing deposit costs would have declined by 5 basis points in the quarter from the continued progress on our deposit remix efforts,” stated Customers Bancorp President Sam Sidhu.

 

 

 

 

 

1 Uninsured deposits (estimate) of $7.4 billion to be reported on the Bank’s call report, less deposits of $1.6 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $116 million.

Total deposits increased $1.3 billion, or 7%, to $19.0 billion at June 30, 2025 as compared to a year ago. Non-interest bearing demand deposits increased $1.0 billion, or 22%, to $5.5 billion, time deposits increased $805 million, or 37% to $3.0 billion and money market deposits increased $667 million, or 19%, to $4.2 billion. These increases were offset by decreases in interest bearing demand deposits of $981 million, or 17%, to $4.9 billion and savings deposits of $199 million, or 13%, to $1.4 billion. The total average cost of deposits decreased by 55 basis points to 2.85% in Q2 2025 from 3.40% in the prior year.

Borrowings

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

(Dollars in thousands)

June 30,

2025

 

March 31,

2025

 

June 30,

2024

FHLB advances

$

1,195,377

 

$

1,133,456

 

$

1,018,349

Senior notes

 

99,138

 

 

99,103

 

 

123,970

Subordinated debt

 

182,649

 

 

182,579

 

 

182,370

Total borrowings

$

1,477,164

 

$

1,415,138

 

$

1,324,689

Total borrowings increased $62 million, or 4%, to $1.5 billion at June 30, 2025 as compared to the prior quarter. This increase primarily resulted from draws of $60 million in FHLB advances during Q2 2025. As of June 30, 2025, Customers’ immediately available borrowing capacity with the FRB and FHLB was approximately $8.0 billion, of which $1.2 billion of available capacity was utilized in borrowings and $1.7 billion was utilized to collateralize deposits.

Total borrowings increased $152 million, or 12%, to $1.5 billion at June 30, 2025 as compared to a year ago. This increase primarily resulted from net draws of $165 million in FHLB advances, partially offset by repayments of $25 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)

June 30,

2025

 

March 31,

2025

 

June 30,

2024

Customers Bancorp, Inc.

 

 

 

 

 

Common Equity

$

1,781,357

 

 

$

1,726,766

 

 

$

1,609,071

 

Tangible Common Equity*

$

1,777,728

 

 

$

1,723,137

 

 

$

1,605,442

 

Common Equity to Total Assets

 

7.9

%

 

 

7.7

%

 

 

7.7

%

Tangible Common Equity to Tangible Assets*

 

7.9

%

 

 

7.7

%

 

 

7.7

%

Book Value per common share

$

56.36

 

 

$

54.85

 

 

$

50.81

 

Tangible Book Value per common share*

$

56.24

 

 

$

54.74

 

 

$

50.70

 

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

 

12.0

%

 

 

11.7

%

 

 

12.8

%

Total risk based capital ratio (1)

 

14.5

%

 

 

14.6

%

 

 

15.8

%

 

 

 

 

 

 

(1) Regulatory capital ratios as of June 30, 2025 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 $55 million to $1.8 billion, and tangible common equity* increased $55 million to $1.8 billion, at June 30, 2025 compared to the prior quarter, respectively, primarily from earnings of $56 million, partially offset by increased unrealized losses on investment securities of $4 million (net of taxes) deferred in accumulated other comprehensive income (“AOCI”). Similarly, book value per common share increased to $56.36 from $54.85, and tangible book value per common share* increased to $56.24 from $54.74, at June 30, 2025 and March 31, 2025, respectively.

Customers Bancorp’s common equity increased $172 million to $1.8 billion, and tangible common equity* increased $172 million to $1.8 billion, at June 30, 2025 compared to a year ago, respectively, primarily from earnings of $132 million and decreased unrealized losses on investment securities in AOCI of $60 million (net of taxes), offset in part by $25 million of common share repurchases. Similarly, book value per common share increased to $56.36 from $50.81, and tangible book value per common share* increased to $56.24 from $50.70, at June 30, 2025 and June 30, 2024, 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 12.0%, 14.5%, 7.9%, and 7.9%, respectively, at June 30, 2025.

At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At June 30, 2025, Tier 1 capital (estimate) and total risk based capital (estimate) were 13.0% and 14.4%, respectively.

Key Profitability Trends

Net Interest Income

Net interest income totaled $176.7 million in Q2 2025, an increase of $9.3 million from Q1 2025. This increase was driven by an increase in interest income of $13.1 million primarily due to higher interest income from specialized lending, mortgage finance and investment securities.

“Net interest margin expanded in the quarter as we realized the benefits of strong loan growth, balance sheet optimization, and well managed deposit costs,” stated Sam Sidhu. “We continue to have positive drivers to net interest income on both sides of the balance sheet with a strong loan pipeline and continued momentum from our roster of primarily deposit focused commercial banking teams, which we continue to add to each quarter,” stated Sam Sidhu.

Net interest income totaled $176.7 million in Q2 2025, an increase of $9.1 million from Q2 2024. This increase was primarily due to lower interest expense from a favorable shift in deposit mix and lower market interest rates, and higher interest income from specialized lending, multifamily and mortgage finance, which were partially offset by lower interest income from investment securities, consumer installment loans and interest-earning deposits.

Non-Interest Income

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

 

Three Months Ended

 

 

 

Three Months Ended

 

 

(Dollars in thousands)

June 30,

2025

 

March 31,

2025

 

Increase

(Decrease)

 

June 30,

2025

 

June 30,

2024

 

Increase

(Decrease)

Commercial lease income

$

11,056

 

 

$

10,668

 

 

$

388

 

 

$

11,056

 

 

$

10,282

 

 

$

774

 

Loan fees

 

9,106

 

 

 

7,235

 

 

 

1,871

 

 

 

9,106

 

 

 

5,233

 

 

 

3,873

 

Bank-owned life insurance

 

2,249

 

 

 

4,660

 

 

 

(2,411

)

 

 

2,249

 

 

 

2,007

 

 

 

242

 

Mortgage finance transactional fees

 

1,175

 

 

 

933

 

 

 

242

 

 

 

1,175

 

 

 

1,058

 

 

 

117

 

Net gain (loss) on sale of loans and leases

 

—

 

 

 

2

 

 

 

(2

)

 

 

—

 

 

 

(238

)

 

 

238

 

Net gain (loss) on sale of investment securities

 

(1,797

)

 

 

—

 

 

 

(1,797

)

 

 

(1,797

)

 

 

(719

)

 

 

(1,078

)

Impairment loss on debt securities

 

—

 

 

 

(51,319

)

 

 

51,319

 

 

 

—

 

 

 

—

 

 

 

—

 

Unrealized gain on equity method investments

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11,041

 

 

 

(11,041

)

Other

 

7,817

 

 

 

3,331

 

 

 

4,486

 

 

 

7,817

 

 

 

2,373

 

 

 

5,444

 

Total non-interest income (loss)

$

29,606

 

 

$

(24,490

)

 

$

54,096

 

 

$

29,606

 

 

$

31,037

 

 

$

(1,431

)

Reported non-interest income totaled $29.6 million for Q2 2025, an increase of $54.1 million compared to a loss of $24.5 million for Q1 2025. The increase was primarily due to $51.3 million of impairment loss on certain AFS debt securities recorded in Q1 2025 that the Bank decided to sell as of March 31, 2025, and increases in other non-interest income of $4.5 million primarily from $1.7 million of gain on sale of leased assets and $1.8 million of fees associated with the sunsetting of a loan origination program with a fintech company, which was recently acquired by a bank. These increases were partially offset by a decrease in bank-owned life insurance income of $2.4 million primarily due to lower death benefits received from insurance carriers.

Non-interest income totaled $29.6 million for Q2 2025, a decrease of $1.4 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, partially offset by increases in loan fees of $3.9 million primarily resulting from increased unused line of credit fees, $1.8 million of fees associated with sunsetting of a loan origination program with a fintech company, which was recently acquired by a bank, and deposit account fees of $1.7 million.

Non-Interest Expense

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

 

Three Months Ended

 

 

 

Three Months Ended

 

 

(Dollars in thousands)

June 30,

2025

 

March 31,

2025

 

Increase

(Decrease)

 

June 30,

2025

 

June 30,

2024

 

Increase

(Decrease)

Salaries and employee benefits

$

45,848

 

$

42,674

 

$

3,174

 

 

$

45,848

 

$

44,947

 

$

901

 

Technology, communication and bank operations

 

10,382

 

 

11,312

 

 

(930

)

 

 

10,382

 

 

16,227

 

 

(5,845

)

Commercial lease depreciation

 

8,743

 

 

8,463

 

 

280

 

 

 

8,743

 

 

7,829

 

 

914

 

Professional services

 

13,850

 

 

11,857

 

 

1,993

 

 

 

13,850

 

 

6,104

 

 

7,746

 

Loan servicing

 

4,053

 

 

4,630

 

 

(577

)

 

 

4,053

 

 

3,516

 

 

537

 

Occupancy

 

3,551

 

 

3,412

 

 

139

 

 

 

3,551

 

 

3,120

 

 

431

 

FDIC assessments, non-income taxes and regulatory fees

 

11,906

 

 

11,750

 

 

156

 

 

 

11,906

 

 

10,236

 

 

1,670

 

Advertising and promotion

 

461

 

 

528

 

 

(67

)

 

 

461

 

 

1,254

 

 

(793

)

Other

 

7,832

 

 

8,145

 

 

(313

)

 

 

7,832

 

 

10,219

 

 

(2,387

)

Total non-interest expense

$

106,626

 

$

102,771

 

$

3,855

 

 

$

106,626

 

$

103,452

 

$

3,174

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses totaled $106.6 million in Q2 2025, an increase of $3.9 million compared to Q1 2025. The increase was primarily attributable to increases of $3.2 million in salaries and employee benefits primarily due to higher headcount, annual merit increases, and incentives and $2.0 million in professional fees, partially offset by a decrease of $0.9 million in technology, communication and bank operations primarily due to lower deposit servicing fees.

“During the quarter, as previously communicated, we reinvested a portion of the benefit of our operational excellence initiatives we realized in Q1 2025 as we make investments in our franchise to position us for success in both the near-term and over the long-term. Even with these investments our efficiency ratio declined as we drove positive operating leverage,” stated Sam Sidhu.

Non-interest expenses totaled $106.6 million in Q2 2025, an increase of $3.2 million compared to Q2 2024. The increase was primarily attributable to increases of $7.7 million in professional fees including the investment in our risk management infrastructure and $1.7 million in FDIC assessments, non-income taxes and regulatory fees. These increases were partially offset by decreases of $5.8 million in technology, communication and bank operations primarily due to lower deposit servicing fees and software-as-a-service expenses and in fees paid to a fintech company related to a consumer installment loan origination program.

Taxes

Income tax expense increased by $19.0 million to a provision of $18.0 million in Q2 2025 from a benefit of $1.0 million in Q1 2025 primarily due to higher pre-tax income and a decrease in discrete tax benefits from share-based compensation.

Income tax expense decreased by $1.1 million to a provision of $18.0 million in Q2 2025 from $19.0 million in Q2 2024 primarily due to higher income tax credits estimated in 2025. The effective tax rate was 22.8% for Q2 2025.

Outlook

“Looking forward, our strategy remains unchanged. We are focused on continuing the transformation of our deposit franchise, further strengthening our risk management and compliance infrastructure, improving our profitability and growing net interest income, and maintaining strong capital ratios, liquidity, and credit quality. As a result of the strong performance achieved through the first half of the year, we are updating our full year 2025 targets for loan growth, net interest income growth, and core efficiency ratio. In 2025, we are now targeting to increase the loan portfolio by 8% to 11%, net interest income by 7% to 10% and for core efficiency ratio have a bias to the low end of the low to mid 50's range. We remain focused on executing in those areas which differentiate us from our peers and believe that providing truly exceptional service, sophisticated product offerings, recruitment of top talent, and a single-point-of-contact service model will deliver strategic, organic growth. Importantly, our cubiX platform is proving to be a mission-critical real-time payments solution for our commercial clients which we feel will continue to differentiate our company and drive long-term franchise value. We believe we are incredibly well positioned to continue to take market share winning new client relationships and that we have the right strategy, the right team, and a client-centric culture to achieve our goals in 2025 and beyond,” concluded Sam Sidhu.

Webcast

Date:

Friday, July 25, 2025

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 2nd 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 $22 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. 72 out of the 100 largest publicly traded banks in 2025 Forbes Best Banks list
  • 2024 Inc. Magazine Best in Business List in Financial Services Category
  • Net Promoter Score of 73 compared to industry average of 41

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 ongoing 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; the effects of changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs on its trading partners; 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, 2024, 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.

Q2 2025 Overview

The following table presents a summary of key earnings and performance metrics for the quarter ended June 30, 2025 and the preceding four quarters:

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

EARNINGS SUMMARY - UNAUDITED

 

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

Q2

 

Q1

 

Q4

 

Q3

 

Q2

 

Six Months Ended

June 30,

2025

 

2025

 

2024

 

2024

 

2024

 

2025

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Profitability Metrics:

Net income available to common shareholders

$

55,846

 

 

$

9,523

 

 

$

23,266

 

 

$

42,937

 

 

$

54,300

 

 

$

65,369

 

 

$

100,226

 

Per share amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

$

1.77

 

 

$

0.30

 

 

$

0.74

 

 

$

1.36

 

 

$

1.72

 

 

$

2.07

 

 

$

3.18

 

 

Earnings per share - diluted

$

1.73

 

 

$

0.29

 

 

$

0.71

 

 

$

1.31

 

 

$

1.66

 

 

$

2.02

 

 

$

3.06

 

 

Book value per common share (1)

$

56.36

 

 

$

54.85

 

 

$

54.20

 

 

$

53.07

 

 

$

50.81

 

 

$

56.36

 

 

$

50.81

 

 

CUBI stock price (1)

$

58.74

 

 

$

50.20

 

 

$

48.68

 

 

$

46.45

 

 

$

47.98

 

 

$

58.74

 

 

$

47.98

 

 

CUBI stock price as % of book value (1)

 

104

%

 

 

92

%

 

 

90

%

 

 

88

%

 

 

94

%

 

 

104

%

 

 

94

%

Average shares outstanding - basic

 

31,585,390

 

 

 

31,447,623

 

 

 

31,346,920

 

 

 

31,567,797

 

 

 

31,649,715

 

 

 

31,516,887

 

 

 

31,561,569

 

Average shares outstanding - diluted

 

32,374,061

 

 

 

32,490,572

 

 

 

32,557,621

 

 

 

32,766,488

 

 

 

32,699,149

 

 

 

32,431,995

 

 

 

32,776,842

 

Shares outstanding (1)

 

31,606,934

 

 

 

31,479,132

 

 

 

31,346,507

 

 

 

31,342,107

 

 

 

31,667,655

 

 

 

31,606,934

 

 

 

31,667,655

 

Return on average assets (“ROAA”)

 

1.09

%

 

 

0.23

%

 

 

0.48

%

 

 

0.88

%

 

 

1.11

%

 

 

0.67

%

 

 

1.02

%

Return on average common equity (“ROCE”)

 

12.79

%

 

 

2.23

%

 

 

5.50

%

 

 

10.44

%

 

 

13.85

%

 

 

7.57

%

 

 

12.98

%

Net interest margin, tax equivalent

 

3.27

%

 

 

3.13

%

 

 

3.11

%

 

 

3.06

%

 

 

3.29

%

 

 

3.20

%

 

 

3.20

%

Efficiency ratio

 

51.23

%

 

 

52.94

%

 

 

56.86

%

 

 

62.40

%

 

 

51.87

%

 

 

52.06

%

 

 

53.16

%

Non-GAAP Profitability Metrics (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

Core earnings

$

58,147

 

 

$

50,002

 

 

$

44,168

 

 

$

43,838

 

 

$

48,567

 

 

$

108,149

 

 

$

95,099

 

Core pre-tax pre-provision net income

$

101,785

 

 

$

93,489

 

 

$

84,224

 

 

$

64,824

 

 

$

89,220

 

 

$

195,274

 

 

$

172,894

 

Per share amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core earnings per share - diluted

$

1.80

 

 

$

1.54

 

 

$

1.36

 

 

$

1.34

 

 

$

1.49

 

 

$

3.33

 

 

$

2.90

 

 

Tangible book value per common share (1)

$

56.24

 

 

$

54.74

 

 

$

54.08

 

 

$

52.96

 

 

$

50.70

 

 

$

56.24

 

 

$

50.70

 

 

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

 

104

%

 

 

92

%

 

 

90

%

 

 

88

%

 

 

95

%

 

 

104

%

 

 

95

%

Core ROAA

 

1.10

%

 

 

0.97

%

 

 

0.86

%

 

 

0.89

%

 

 

1.00

%

 

 

1.04

%

 

 

0.98

%

Core ROCE

 

13.32

%

 

 

11.72

%

 

 

10.44

%

 

 

10.66

%

 

 

12.39

%

 

 

12.53

%

 

 

12.32

%

Core pre-tax pre-provision ROAA

 

1.83

%

 

 

1.70

%

 

 

1.51

%

 

 

1.21

%

 

 

1.71

%

 

 

1.76

%

 

 

1.64

%

Core pre-tax pre-provision ROCE

 

22.59

%

 

 

21.11

%

 

 

19.04

%

 

 

14.84

%

 

 

21.79

%

 

 

21.86

%

 

 

21.41

%

Core efficiency ratio

 

51.56

%

 

 

52.69

%

 

 

56.12

%

 

 

61.69

%

 

 

53.47

%

 

 

52.11

%

 

 

53.85

%

Asset Quality:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs

$

13,115

 

 

$

17,144

 

 

$

14,612

 

 

$

17,044

 

 

$

18,711

 

 

$

30,259

 

 

$

36,679

 

Annualized net charge-offs to average total loans and leases

 

0.35

%

 

 

0.48

%

 

 

0.41

%

 

 

0.50

%

 

 

0.56

%

 

 

0.41

%

 

 

0.56

%

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

 

0.18

%

 

 

0.29

%

 

 

0.30

%

 

 

0.34

%

 

 

0.35

%

 

 

0.18

%

 

 

0.35

%

Reserves to NPLs (1)

 

518.29

%

 

 

324.22

%

 

 

316.06

%

 

 

281.36

%

 

 

279.52

%

 

 

518.29

%

 

 

279.52

%

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

 

0.27

%

 

 

0.26

%

 

 

0.25

%

 

 

0.22

%

 

 

0.23

%

 

 

0.27

%

 

 

0.23

%

Customers Bank Capital Ratios (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital to risk-weighted assets

 

13.0

%

 

 

12.40

%

 

 

12.96

%

 

 

13.64

%

 

 

14.17

%

 

 

13.0

%

 

 

14.17

%

Tier 1 capital to risk-weighted assets

 

13.0

%

 

 

12.40

%

 

 

12.96

%

 

 

13.64

%

 

 

14.17

%

 

 

13.0

%

 

 

14.17

%

Total capital to risk-weighted assets

 

14.4

%

 

 

13.92

%

 

 

14.34

%

 

 

15.06

%

 

 

15.64

%

 

 

14.4

%

 

 

15.64

%

Tier 1 capital to average assets (leverage ratio)

 

8.9

%

 

 

8.43

%

 

 

8.65

%

 

 

9.08

%

 

 

9.16

%

 

 

8.9

%

 

 

9.16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 Q2 2025 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 was phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of June 30, 2025, our regulatory capital ratios reflected the full effect of CECL on regulatory capital.

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

Q2

 

Q1

 

Q4

 

Q3

 

Q2

 

June 30,

 

2025

 

2025

 

2024

 

2024

 

2024

 

2025

 

2024

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

$

246,869

 

 

$

231,008

 

 

$

230,534

 

 

$

228,659

 

 

$

224,265

 

 

$

477,877

 

 

$

442,264

 

Investment securities

 

37,381

 

 

 

34,339

 

 

 

39,638

 

 

 

46,265

 

 

 

47,586

 

 

 

71,720

 

 

 

94,388

 

Interest earning deposits

 

39,972

 

 

 

42,914

 

 

 

48,147

 

 

 

44,372

 

 

 

45,506

 

 

 

82,886

 

 

 

98,323

 

Loans held for sale

 

1,806

 

 

 

4,761

 

 

 

9,447

 

 

 

10,907

 

 

 

13,671

 

 

 

6,567

 

 

 

25,719

 

Other

 

1,973

 

 

 

1,887

 

 

 

2,140

 

 

 

1,910

 

 

 

3,010

 

 

 

3,860

 

 

 

5,121

 

Total interest income

 

328,001

 

 

 

314,909

 

 

 

329,906

 

 

 

332,113

 

 

 

334,038

 

 

 

642,910

 

 

 

665,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

134,045

 

 

 

131,308

 

 

 

144,974

 

 

 

155,829

 

 

 

148,784

 

 

 

265,353

 

 

 

302,509

 

FHLB advances

 

12,717

 

 

 

11,801

 

 

 

12,595

 

 

 

12,590

 

 

 

13,437

 

 

 

24,518

 

 

 

26,922

 

Subordinated debt

 

3,229

 

 

 

3,212

 

 

 

3,349

 

 

 

3,537

 

 

 

2,734

 

 

 

6,441

 

 

 

5,423

 

Other borrowings

 

1,307

 

 

 

1,142

 

 

 

1,167

 

 

 

1,612

 

 

 

1,430

 

 

 

2,449

 

 

 

2,923

 

Total interest expense

 

151,298

 

 

 

147,463

 

 

 

162,085

 

 

 

173,568

 

 

 

166,385

 

 

 

298,761

 

 

 

337,777

 

Net interest income

 

176,703

 

 

 

167,446

 

 

 

167,821

 

 

 

158,545

 

 

 

167,653

 

 

 

344,149

 

 

 

328,038

 

Provision for credit losses

 

20,781

 

 

 

28,297

 

 

 

21,194

 

 

 

17,066

 

 

 

18,121

 

 

 

49,078

 

 

 

35,191

 

Net interest income after provision for credit losses

 

155,922

 

 

 

139,149

 

 

 

146,627

 

 

 

141,479

 

 

 

149,532

 

 

 

295,071

 

 

 

292,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial lease income

 

11,056

 

 

 

10,668

 

 

 

10,604

 

 

 

10,093

 

 

 

10,282

 

 

 

21,724

 

 

 

19,965

 

Loan fees

 

9,106

 

 

 

7,235

 

 

 

8,639

 

 

 

8,011

 

 

 

5,233

 

 

 

16,341

 

 

 

10,513

 

Bank-owned life insurance

 

2,249

 

 

 

4,660

 

 

 

2,125

 

 

 

2,049

 

 

 

2,007

 

 

 

6,909

 

 

 

5,268

 

Mortgage finance transactional fees

 

1,175

 

 

 

933

 

 

 

1,010

 

 

 

1,087

 

 

 

1,058

 

 

 

2,108

 

 

 

2,004

 

Net gain (loss) on sale of loans and leases

 

—

 

 

 

2

 

 

 

(852

)

 

 

(14,548

)

 

 

(238

)

 

 

2

 

 

 

(228

)

Net gain (loss) on sale of investment securities

 

(1,797

)

 

 

—

 

 

 

(26,260

)

 

 

—

 

 

 

(719

)

 

 

(1,797

)

 

 

(749

)

Impairment loss on debt securities

 

—

 

 

 

(51,319

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(51,319

)

 

 

—

 

Unrealized gain on equity method investments

 

—

 

 

 

—

 

 

 

389

 

 

 

—

 

 

 

11,041

 

 

 

—

 

 

 

11,041

 

Other

 

7,817

 

 

 

3,331

 

 

 

3,954

 

 

 

1,865

 

 

 

2,373

 

 

 

11,148

 

 

 

4,454

 

Total non-interest income (loss)

 

29,606

 

 

 

(24,490

)

 

 

(391

)

 

 

8,557

 

 

 

31,037

 

 

 

5,116

 

 

 

52,268

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

45,848

 

 

 

42,674

 

 

 

47,147

 

 

 

47,717

 

 

 

44,947

 

 

 

88,522

 

 

 

80,972

 

Technology, communication and bank operations

 

10,382

 

 

 

11,312

 

 

 

13,435

 

 

 

13,588

 

 

 

16,227

 

 

 

21,694

 

 

 

38,131

 

Commercial lease depreciation

 

8,743

 

 

 

8,463

 

 

 

8,933

 

 

 

7,811

 

 

 

7,829

 

 

 

17,206

 

 

 

15,799

 

Professional services

 

13,850

 

 

 

11,857

 

 

 

13,473

 

 

 

9,048

 

 

 

6,104

 

 

 

25,707

 

 

 

12,457

 

Loan servicing

 

4,053

 

 

 

4,630

 

 

 

4,584

 

 

 

3,778

 

 

 

3,516

 

 

 

8,683

 

 

 

7,547

 

Occupancy

 

3,551

 

 

 

3,412

 

 

 

3,335

 

 

 

2,987

 

 

 

3,120

 

 

 

6,963

 

 

 

5,467

 

FDIC assessments, non-income taxes and regulatory fees

 

11,906

 

 

 

11,750

 

 

 

10,077

 

 

 

7,902

 

 

 

10,236

 

 

 

23,656

 

 

 

23,705

 

Advertising and promotion

 

461

 

 

 

528

 

 

 

1,645

 

 

 

908

 

 

 

1,254

 

 

 

989

 

 

 

1,936

 

Other

 

7,832

 

 

 

8,145

 

 

 

7,746

 

 

 

10,279

 

 

 

10,219

 

 

 

15,977

 

 

 

16,607

 

Total non-interest expense

 

106,626

 

 

 

102,771

 

 

 

110,375

 

 

 

104,018

 

 

 

103,452

 

 

 

209,397

 

 

 

202,621

 

Income before income tax expense (benefit)

 

78,902

 

 

 

11,888

 

 

 

35,861

 

 

 

46,018

 

 

 

77,117

 

 

 

90,790

 

 

 

142,494

 

Income tax expense (benefit)

 

17,963

 

 

 

(1,024

)

 

 

8,946

 

 

 

(725

)

 

 

19,032

 

 

 

16,939

 

 

 

34,683

 

Net income

 

60,939

 

 

 

12,912

 

 

 

26,915

 

 

 

46,743

 

 

 

58,085

 

 

 

73,851

 

 

 

107,811

 

Preferred stock dividends

 

3,185

 

 

 

3,389

 

 

 

3,649

 

 

 

3,806

 

 

 

3,785

 

 

 

6,574

 

 

 

7,585

 

Loss on redemption of preferred stock

 

1,908

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,908

 

 

 

—

 

Net income available to common shareholders

$

55,846

 

 

$

9,523

 

 

$

23,266

 

 

$

42,937

 

 

$

54,300

 

 

$

65,369

 

 

$

100,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

1.77

 

 

$

0.30

 

 

$

0.74

 

 

$

1.36

 

 

$

1.72

 

 

$

2.07

 

 

$

3.18

 

Diluted earnings per common share

 

1.73

 

 

 

0.29

 

 

 

0.71

 

 

 

1.31

 

 

 

1.66

 

 

 

2.02

 

 

 

3.06

 

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET - UNAUDITED

(Dollars in thousands)

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

2025

 

2025

 

2024

 

2024

 

2024

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

72,986

 

 

$

62,146

 

 

$

56,787

 

 

$

39,429

 

 

$

45,045

 

Interest earning deposits

 

3,430,525

 

 

 

3,366,544

 

 

 

3,729,144

 

 

 

3,048,593

 

 

 

3,003,542

 

Cash and cash equivalents

 

3,503,511

 

 

 

3,428,690

 

 

 

3,785,931

 

 

 

3,088,022

 

 

 

3,048,587

 

Investment securities, at fair value

 

1,877,406

 

 

 

2,057,555

 

 

 

2,019,694

 

 

 

2,412,069

 

 

 

2,511,650

 

Investment securities held to maturity

 

853,126

 

 

 

938,161

 

 

 

991,937

 

 

 

1,064,437

 

 

 

962,799

 

Loans held for sale

 

32,963

 

 

 

37,529

 

 

 

204,794

 

 

 

275,420

 

 

 

375,724

 

Loans and leases receivable

 

13,719,829

 

 

 

13,555,820

 

 

 

13,127,634

 

 

 

12,527,283

 

 

 

12,254,204

 

Loans receivable, mortgage finance, at fair value

 

1,536,254

 

 

 

1,366,460

 

 

 

1,321,128

 

 

 

1,250,413

 

 

 

1,002,711

 

Loans receivable, installment, at fair value

 

123,354

 

 

 

138,159

 

 

 

—

 

 

 

—

 

 

 

—

 

Allowance for credit losses on loans and leases

 

(147,418

)

 

 

(141,076

)

 

 

(136,775

)

 

 

(133,158

)

 

 

(132,436

)

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

 

15,232,019

 

 

 

14,919,363

 

 

 

14,311,987

 

 

 

13,644,538

 

 

 

13,124,479

 

FHLB, Federal Reserve Bank, and other restricted stock

 

100,590

 

 

 

96,758

 

 

 

96,214

 

 

 

95,035

 

 

 

92,276

 

Accrued interest receivable

 

101,481

 

 

 

105,800

 

 

 

108,351

 

 

 

115,588

 

 

 

112,788

 

Bank premises and equipment, net

 

5,978

 

 

 

6,653

 

 

 

6,668

 

 

 

6,730

 

 

 

7,019

 

Bank-owned life insurance

 

300,747

 

 

 

298,551

 

 

 

297,641

 

 

 

295,531

 

 

 

293,108

 

Other real estate owned

 

12,306

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Goodwill and other intangibles

 

3,629

 

 

 

3,629

 

 

 

3,629

 

 

 

3,629

 

 

 

3,629

 

Other assets

 

527,044

 

 

 

530,355

 

 

 

481,395

 

 

 

455,083

 

 

 

410,916

 

Total assets

$

22,550,800

 

 

$

22,423,044

 

 

$

22,308,241

 

 

$

21,456,082

 

 

$

20,942,975

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Demand, non-interest bearing deposits

$

5,481,065

 

 

$

5,552,605

 

 

$

5,608,288

 

 

$

4,670,809

 

 

$

4,474,862

 

Interest bearing deposits

 

13,494,953

 

 

 

13,380,320

 

 

 

13,238,173

 

 

 

13,398,580

 

 

 

13,203,231

 

Total deposits

 

18,976,018

 

 

 

18,932,925

 

 

 

18,846,461

 

 

 

18,069,389

 

 

 

17,678,093

 

FHLB advances

 

1,195,377

 

 

 

1,133,456

 

 

 

1,128,352

 

 

 

1,117,229

 

 

 

1,018,349

 

Other borrowings

 

99,138

 

 

 

99,103

 

 

 

99,068

 

 

 

99,033

 

 

 

123,970

 

Subordinated debt

 

182,649

 

 

 

182,579

 

 

 

182,509

 

 

 

182,439

 

 

 

182,370

 

Accrued interest payable and other liabilities

 

234,060

 

 

 

210,421

 

 

 

215,168

 

 

 

186,812

 

 

 

193,328

 

Total liabilities

 

20,687,242

 

 

 

20,558,484

 

 

 

20,471,558

 

 

 

19,654,902

 

 

 

19,196,110

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

82,201

 

 

 

137,794

 

 

 

137,794

 

 

 

137,794

 

 

 

137,794

 

Common stock

 

36,123

 

 

 

35,995

 

 

 

35,758

 

 

 

35,734

 

 

 

35,686

 

Additional paid in capital

 

572,473

 

 

 

570,172

 

 

 

575,333

 

 

 

571,609

 

 

 

567,345

 

Retained earnings

 

1,391,380

 

 

 

1,335,534

 

 

 

1,326,011

 

 

 

1,302,745

 

 

 

1,259,808

 

Accumulated other comprehensive income (loss), net

 

(71,325

)

 

 

(67,641

)

 

 

(96,560

)

 

 

(106,082

)

 

 

(131,358

)

Treasury stock, at cost

 

(147,294

)

 

 

(147,294

)

 

 

(141,653

)

 

 

(140,620

)

 

 

(122,410

)

Total shareholders’ equity

 

1,863,558

 

 

 

1,864,560

 

 

 

1,836,683

 

 

 

1,801,180

 

 

 

1,746,865

 

Total liabilities and shareholders’ equity

$

22,550,800

 

 

$

22,423,044

 

 

$

22,308,241

 

 

$

21,456,082

 

 

$

20,942,975

 

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

June 30, 2025

 

March 31, 2025

 

June 30, 2024

 

Average

Balance

 

Interest

Income or

Expense

 

Average

Yield or

Cost (%)

 

Average

Balance

 

Interest

Income or

Expense

 

Average

Yield or

Cost (%)

 

Average

Balance

 

Interest

Income or

Expense

 

Average

Yield or

Cost (%)

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning deposits

$

3,565,168

 

$

39,972

 

4.50%

 

$

3,857,617

 

$

42,914

 

4.51%

 

$

3,325,771

 

$

45,506

 

5.50%

Investment securities (1)

 

2,890,878

 

 

37,381

 

5.19%

 

 

3,100,429

 

 

34,339

 

4.49%

 

 

3,732,565

 

 

47,586

 

5.13%

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specialized lending loans and leases (2)

 

6,785,684

 

 

126,854

 

7.50%

 

 

6,474,034

 

 

120,951

 

7.58%

 

 

5,446,882

 

 

120,977

 

8.93%

Other commercial & industrial loans (2)

 

1,484,528

 

 

25,862

 

6.99%

 

 

1,542,846

 

 

23,933

 

6.29%

 

 

1,540,191

 

 

25,119

 

6.56%

Mortgage finance loans

 

1,501,484

 

 

18,349

 

4.90%

 

 

1,252,602

 

 

14,752

 

4.78%

 

 

1,151,407

 

 

15,087

 

5.27%

Multifamily loans

 

2,317,381

 

 

25,281

 

4.38%

 

 

2,273,893

 

 

23,664

 

4.22%

 

 

2,108,835

 

 

21,461

 

4.09%

Non-owner occupied commercial real estate loans

 

1,581,087

 

 

23,003

 

5.84%

 

 

1,550,372

 

 

21,564

 

5.64%

 

 

1,396,771

 

 

20,470

 

5.89%

Residential mortgages

 

537,008

 

 

6,344

 

4.74%

 

 

530,613

 

 

6,228

 

4.76%

 

 

520,791

 

 

5,955

 

4.60%

Installment loans

 

879,972

 

 

22,982

 

10.48%

 

 

938,193

 

 

24,677

 

10.67%

 

 

1,186,486

 

 

28,867

 

9.79%

Total loans and leases (3)

 

15,087,144

 

 

248,675

 

6.61%

 

 

14,562,553

 

 

235,769

 

6.57%

 

 

13,351,363

 

 

237,936

 

7.17%

Other interest-earning assets

 

133,824

 

 

1,973

 

5.91%

 

 

127,793

 

 

1,887

 

5.99%

 

 

110,585

 

 

3,010

 

10.95%

Total interest-earning assets

 

21,677,014

 

 

328,001

 

6.07%

 

 

21,648,392

 

 

314,909

 

5.89%

 

 

20,520,284

 

 

334,038

 

6.54%

Non-interest-earning assets

 

685,975

 

 

 

 

 

 

666,571

 

 

 

 

 

 

464,919

 

 

 

 

Total assets

$

22,362,989

 

 

 

 

 

$

22,314,963

 

 

 

 

 

$

20,985,203

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking accounts

$

4,935,587

 

$

47,245

 

3.84%

 

$

5,358,206

 

$

49,903

 

3.78%

 

$

5,719,698

 

$

64,047

 

4.50%

Money market deposit accounts

 

4,137,035

 

 

40,397

 

3.92%

 

 

3,882,855

 

 

37,767

 

3.94%

 

 

3,346,718

 

 

38,167

 

4.59%

Other savings accounts

 

1,325,639

 

 

12,767

 

3.86%

 

 

1,151,439

 

 

10,691

 

3.77%

 

 

1,810,375

 

 

21,183

 

4.71%

Certificates of deposit

 

2,852,645

 

 

33,636

 

4.73%

 

 

2,749,720

 

 

32,947

 

4.86%

 

 

2,034,605

 

 

25,387

 

5.02%

Total interest-bearing deposits (4)

 

13,250,906

 

 

134,045

 

4.06%

 

 

13,142,220

 

 

131,308

 

4.05%

 

 

12,911,396

 

 

148,784

 

4.63%

Borrowings

 

1,417,370

 

 

17,253

 

4.88%

 

 

1,346,941

 

 

16,155

 

4.86%

 

 

1,454,010

 

 

17,601

 

4.87%

Total interest-bearing liabilities

 

14,668,276

 

 

151,298

 

4.14%

 

 

14,489,161

 

 

147,463

 

4.13%

 

 

14,365,406

 

 

166,385

 

4.66%

Non-interest-bearing deposits (4)

 

5,593,581

 

 

 

 

 

 

5,710,644

 

 

 

 

 

 

4,701,695

 

 

 

 

Total deposits and borrowings

 

20,261,857

 

 

 

2.99%

 

 

20,199,805

 

 

 

2.96%

 

 

19,067,101

 

 

 

3.51%

Other non-interest-bearing liabilities

 

221,465

 

 

 

 

 

 

246,455

 

 

 

 

 

 

203,714

 

 

 

 

Total liabilities

 

20,483,322

 

 

 

 

 

 

20,446,260

 

 

 

 

 

 

19,270,815

 

 

 

 

Shareholders’ equity

 

1,879,667

 

 

 

 

 

 

1,868,703

 

 

 

 

 

 

1,714,388

 

 

 

 

Total liabilities and shareholders’ equity

$

22,362,989

 

 

 

 

 

$

22,314,963

 

 

 

 

 

$

20,985,203

 

 

 

 

Net interest income

 

 

 

176,703

 

 

 

 

 

 

167,446

 

 

 

 

 

 

167,653

 

 

Tax-equivalent adjustment

 

 

 

366

 

 

 

 

 

 

363

 

 

 

 

 

 

393

 

 

Net interest earnings

 

 

$

177,069

 

 

 

 

 

$

167,809

 

 

 

 

 

$

168,046

 

 

Interest spread

 

 

 

 

3.07%

 

 

 

 

 

2.93%

 

 

 

 

 

3.03%

Net interest margin

 

 

 

 

3.27%

 

 

 

 

 

3.13%

 

 

 

 

 

3.28%

Net interest margin tax equivalent (5)

 

 

 

 

3.27%

 

 

 

 

 

3.13%

 

 

 

 

 

3.29%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 2.85%, 2.82% and 3.40% for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.

(5) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, presented to approximate interest income as a taxable asset.

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

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

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

June 30, 2025

 

June 30, 2024

 

Average

Balance

 

Interest

Income or

Expense

 

Average

Yield or

Cost (%)

 

Average

Balance

 

Interest

Income or

Expense

 

Average

Yield or

Cost (%)

Assets

 

 

 

 

 

 

 

 

 

 

 

Interest earning deposits

$

3,710,585

 

$

82,886

 

4.50%

 

$

3,595,400

 

$

98,323

 

5.50%

Investment securities (1)

 

2,995,074

 

 

71,720

 

4.83%

 

 

3,751,831

 

 

94,388

 

5.06%

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial:

 

 

 

 

 

 

 

 

 

 

 

Specialized lending loans and leases (2)

 

6,630,720

 

 

247,805

 

7.54%

 

 

5,357,613

 

 

236,567

 

8.88%

Other commercial & industrial loans (2)

 

1,513,526

 

 

49,795

 

6.63%

 

 

1,597,428

 

 

51,833

 

6.53%

Mortgage finance loans

 

1,377,730

 

 

33,101

 

4.85%

 

 

1,092,292

 

 

27,917

 

5.14%

Multifamily loans

 

2,295,757

 

 

48,945

 

4.30%

 

 

2,115,243

 

 

42,716

 

4.06%

Non-owner occupied commercial real estate loans

 

1,565,815

 

 

44,567

 

5.74%

 

 

1,372,619

 

 

40,649

 

5.96%

Residential mortgages

 

533,828

 

 

12,572

 

4.75%

 

 

521,659

 

 

11,663

 

4.50%

Installment loans

 

908,922

 

 

47,659

 

10.57%

 

 

1,183,104

 

 

56,638

 

9.63%

Total loans and leases (3)

 

14,826,298

 

 

484,444

 

6.59%

 

 

13,239,958

 

 

467,983

 

7.11%

Other interest-earning assets

 

130,825

 

 

3,860

 

5.95%

 

 

109,055

 

 

5,121

 

9.44%

Total interest-earning assets

 

21,662,782

 

 

642,910

 

5.98%

 

 

20,696,244

 

 

665,815

 

6.46%

Non-interest-earning assets

 

676,326

 

 

 

 

 

 

463,972

 

 

 

 

Total assets

$

22,339,108

 

 

 

 

 

$

21,160,216

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Interest checking accounts

$

5,145,729

 

$

97,148

 

3.81%

 

$

5,629,272

 

$

125,578

 

4.49%

Money market deposit accounts

 

4,010,647

 

 

78,164

 

3.93%

 

 

3,289,911

 

 

74,978

 

4.58%

Other savings accounts

 

1,239,021

 

 

23,458

 

3.82%

 

 

1,781,746

 

 

42,582

 

4.81%

Certificates of deposit

 

2,801,467

 

 

66,583

 

4.79%

 

 

2,392,696

 

 

59,371

 

4.99%

Total interest-bearing deposits (4)

 

13,196,864

 

 

265,353

 

4.05%

 

 

13,093,625

 

 

302,509

 

4.65%

Borrowings

 

1,382,349

 

 

33,408

 

4.87%

 

 

1,480,359

 

 

35,268

 

4.79%

Total interest-bearing liabilities

 

14,579,213

 

 

298,761

 

4.13%

 

 

14,573,984

 

 

337,777

 

4.66%

Non-interest-bearing deposits (4)

 

5,651,789

 

 

 

 

 

 

4,661,341

 

 

 

 

Total deposits and borrowings

 

20,231,002

 

 

 

2.98%

 

 

19,235,325

 

 

 

3.53%

Other non-interest-bearing liabilities

 

233,891

 

 

 

 

 

 

234,195

 

 

 

 

Total liabilities

 

20,464,893

 

 

 

 

 

 

19,469,520

 

 

 

 

Shareholders’ equity

 

1,874,215

 

 

 

 

 

 

1,690,696

 

 

 

 

Total liabilities and shareholders’ equity

$

22,339,108

 

 

 

 

 

$

21,160,216

 

 

 

 

Net interest income

 

 

 

344,149

 

 

 

 

 

 

328,038

 

 

Tax-equivalent adjustment

 

 

 

729

 

 

 

 

 

 

787

 

 

Net interest earnings

 

 

$

344,878

 

 

 

 

 

$

328,825

 

 

Interest spread

 

 

 

 

3.00%

 

 

 

 

 

2.93%

Net interest margin

 

 

 

 

3.20%

 

 

 

 

 

3.19%

Net interest margin tax equivalent (5)

 

 

 

 

3.20%

 

 

 

 

 

3.20%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 2.84% and 3.43% for the six months ended June 30, 2025 and 2024, respectively.

(5) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the six months ended June 30, 2025 and 2024, presented to approximate interest income as a taxable asset.

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

2025

 

2025

 

2024

 

2024

 

2024

Loans and leases held for investment

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Commercial & industrial:

 

 

 

 

 

 

 

 

 

Specialized lending

$

6,454,661

 

$

6,070,093

 

$

5,842,420

 

$

5,468,507

 

$

5,528,745

Other commercial & industrial

 

1,037,684

 

 

1,062,933

 

 

1,062,631

 

 

1,087,222

 

 

1,092,146

Mortgage finance

 

1,625,764

 

 

1,477,896

 

 

1,440,847

 

 

1,367,617

 

 

1,122,812

Multifamily

 

2,247,282

 

 

2,322,123

 

 

2,252,246

 

 

2,115,978

 

 

2,067,332

Commercial real estate owner occupied

 

1,065,006

 

 

1,139,126

 

 

1,100,944

 

 

981,904

 

 

805,779

Commercial real estate non-owner occupied

 

1,497,385

 

 

1,438,906

 

 

1,359,130

 

 

1,326,591

 

 

1,202,606

Construction

 

98,626

 

 

154,647

 

 

147,209

 

 

174,509

 

 

163,409

Total commercial loans and leases

 

14,026,408

 

 

13,665,724

 

 

13,205,427

 

 

12,522,328

 

 

11,982,829

Consumer:

 

 

 

 

 

 

 

 

 

Residential

 

520,570

 

 

496,772

 

 

496,559

 

 

500,786

 

 

481,503

Manufactured housing

 

30,287

 

 

31,775

 

 

33,123

 

 

34,481

 

 

35,901

Installment:

 

 

 

 

 

 

 

 

 

Personal

 

457,728

 

 

493,276

 

 

463,854

 

 

453,739

 

 

474,481

Other

 

344,444

 

 

372,892

 

 

249,799

 

 

266,362

 

 

282,201

Total installment loans

 

802,172

 

 

866,168

 

 

713,653

 

 

720,101

 

 

756,682

Total consumer loans

 

1,353,029

 

 

1,394,715

 

 

1,243,335

 

 

1,255,368

 

 

1,274,086

Total loans and leases held for investment

$

15,379,437

 

$

15,060,439

 

$

14,448,762

 

$

13,777,696

 

$

13,256,915

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

 

 

 

 

 

 

 

 

Residential

$

5,180

 

$

1,465

 

$

1,836

 

$

2,523

 

$

2,684

Installment:

 

 

 

 

 

 

 

 

 

Personal

 

27,682

 

 

36,000

 

 

40,903

 

 

55,799

 

 

125,598

Other

 

101

 

 

64

 

 

162,055

 

 

217,098

 

 

247,442

Total installment loans

 

27,783

 

 

36,064

 

 

202,958

 

 

272,897

 

 

373,040

Total loans held for sale

$

32,963

 

$

37,529

 

$

204,794

 

$

275,420

 

$

375,724

 

 

 

 

 

 

 

 

 

 

Total loans and leases portfolio

$

15,412,400

 

$

15,097,968

 

$

14,653,556

 

$

14,053,116

 

$

13,632,639

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

PERIOD END DEPOSIT COMPOSITION - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

2025

 

2025

 

2024

 

2024

 

2024

 

 

 

 

 

 

 

 

 

 

Demand, non-interest bearing

$

5,481,065

 

$

5,552,605

 

$

5,608,288

 

$

4,670,809

 

$

4,474,862

Demand, interest bearing

 

4,912,839

 

 

5,137,961

 

 

5,553,698

 

 

5,606,500

 

 

5,894,056

Total demand deposits

 

10,393,904

 

 

10,690,566

 

 

11,161,986

 

 

10,277,309

 

 

10,368,918

Savings

 

1,375,072

 

 

1,327,854

 

 

1,131,819

 

 

1,399,968

 

 

1,573,661

Money market

 

4,206,516

 

 

4,057,458

 

 

3,844,451

 

 

3,961,028

 

 

3,539,815

Time deposits

 

3,000,526

 

 

2,857,047

 

 

2,708,205

 

 

2,431,084

 

 

2,195,699

Total deposits

$

18,976,018

 

$

18,932,925

 

$

18,846,461

 

$

18,069,389

 

$

17,678,093

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

ASSET QUALITY - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 2025

 

As of March 31, 2025

 

As of June 30, 2024

Loan type

Total loans

 

Allowance

for credit

losses

 

Total

reserves to

total loans

 

Total loans

 

Allowance

for credit

losses

 

Total

reserves to

total loans

 

Total loans

 

Allowance

for credit

losses

 

Total

reserves to

total loans

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial, including specialized lending

$

7,581,855

 

$

36,262

 

0.48

%

 

$

7,244,462

 

$

30,584

 

0.42

%

 

$

6,740,992

 

$

23,721

 

0.35

%

Multifamily

 

2,247,282

 

 

20,864

 

0.93

%

 

 

2,322,123

 

 

18,790

 

0.81

%

 

 

2,067,332

 

 

20,652

 

1.00

%

Commercial real estate owner occupied

 

1,065,006

 

 

12,514

 

1.18

%

 

 

1,139,126

 

 

10,780

 

0.95

%

 

 

805,779

 

 

8,431

 

1.05

%

Commercial real estate non-owner occupied

 

1,497,385

 

 

20,679

 

1.38

%

 

 

1,438,906

 

 

18,058

 

1.25

%

 

 

1,202,606

 

 

17,966

 

1.49

%

Construction

 

98,626

 

 

2,160

 

2.19

%

 

 

154,647

 

 

1,264

 

0.82

%

 

 

163,409

 

 

1,856

 

1.14

%

Total commercial loans and leases receivable

 

12,490,154

 

 

92,479

 

0.74

%

 

 

12,299,264

 

 

79,476

 

0.65

%

 

 

10,980,118

 

 

72,626

 

0.66

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

520,570

 

 

6,331

 

1.22

%

 

 

496,772

 

 

6,163

 

1.24

%

 

 

481,503

 

 

5,884

 

1.22

%

Manufactured housing

 

30,287

 

 

3,721

 

12.29

%

 

 

31,775

 

 

3,800

 

11.96

%

 

 

35,901

 

 

4,094

 

11.40

%

Installment

 

678,818

 

 

44,887

 

6.61

%

 

 

728,009

 

 

51,637

 

7.09

%

 

 

756,682

 

 

49,832

 

6.59

%

Total consumer loans receivable

 

1,229,675

 

 

54,939

 

4.47

%

 

 

1,256,556

 

 

61,600

 

4.90

%

 

 

1,274,086

 

 

59,810

 

4.69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases receivable held for investment

 

13,719,829

 

 

147,418

 

1.07

%

 

 

13,555,820

 

 

141,076

 

1.04

%

 

 

12,254,204

 

 

132,436

 

1.08

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, mortgage finance, at fair value

 

1,536,254

 

 

—

 

—

%

 

 

1,366,460

 

 

—

 

—

%

 

 

1,002,711

 

 

—

 

—

%

Loans receivable, installment, at fair value

 

123,354

 

 

—

 

—

%

 

 

138,159

 

 

—

 

—

%

 

 

—

 

 

—

 

—

%

Loans held for sale

 

32,963

 

 

—

 

—

%

 

 

37,529

 

 

—

 

—

%

 

 

375,724

 

 

—

 

—

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans and leases portfolio

$

15,412,400

 

$

147,418

 

0.96

%

 

$

15,097,968

 

$

141,076

 

0.93

%

 

$

13,632,639

 

$

132,436

 

0.97

%

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

ASSET QUALITY - UNAUDITED (CONTINUED)

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 2025

 

As of March 31, 2025

 

As of June 30, 2024

Loan type

Non accrual

/NPLs

 

Total NPLs

to total

loans

 

Total

reserves to

total NPLs

 

Non accrual

/NPLs

 

Total NPLs

to total

loans

 

Total

reserves to

total NPLs

 

Non accrual

/NPLs

 

Total NPLs

to total

loans

 

Total

reserves to

total NPLs

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial, including specialized lending

$

4,218

 

0.06

%

 

859.70

%

 

$

18,754

 

0.26

%

 

163.08

%

 

$

5,488

 

0.08

%

 

432.23

%

Multifamily

 

—

 

—

%

 

—

%

 

 

—

 

—

%

 

—

%

 

 

14,002

 

0.68

%

 

147.49

%

Commercial real estate owner occupied

 

7,005

 

0.66

%

 

178.64

%

 

 

7,793

 

0.68

%

 

138.33

%

 

 

9,612

 

1.19

%

 

87.71

%

Commercial real estate non-owner occupied

 

62

 

0.00

%

 

33353.23

%

 

 

62

 

0.00

%

 

29125.81

%

 

 

62

 

0.01

%

 

28977.42

%

Construction

 

—

 

—

%

 

—

%

 

 

—

 

—

%

 

—

%

 

 

—

 

—

%

 

—

%

Total commercial loans and leases receivable

 

11,285

 

0.09

%

 

819.49

%

 

 

26,609

 

0.22

%

 

298.68

%

 

 

29,164

 

0.27

%

 

249.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

8,234

 

1.58

%

 

76.89

%

 

 

8,151

 

1.64

%

 

75.61

%

 

 

8,179

 

1.70

%

 

71.94

%

Manufactured housing

 

1,608

 

5.31

%

 

231.41

%

 

 

1,653

 

5.20

%

 

229.89

%

 

 

2,047

 

5.70

%

 

200.00

%

Installment

 

4,944

 

0.73

%

 

907.91

%

 

 

4,659

 

0.64

%

 

1108.33

%

 

 

5,614

 

0.74

%

 

887.64

%

Total consumer loans receivable

 

14,786

 

1.20

%

 

371.56

%

 

 

14,463

 

1.15

%

 

425.91

%

 

 

15,840

 

1.24

%

 

377.59

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases receivable

 

26,071

 

0.19

%

 

565.45

%

 

 

41,072

 

0.30

%

 

343.48

%

 

 

45,004

 

0.37

%

 

294.28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, mortgage finance, at fair value

 

—

 

—

%

 

—

%

 

 

—

 

—

%

 

—

%

 

 

—

 

—

%

 

—

%

Loans receivable, installment, at fair value

 

1,961

 

1.59

%

 

—

%

 

 

2,059

 

1.49

%

 

—

%

 

 

—

 

—

%

 

—

%

Loans held for sale

 

411

 

1.25

%

 

—

%

 

 

382

 

1.02

%

 

—

%

 

 

2,376

 

0.63

%

 

—

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans and leases portfolio

$

28,443

 

0.18

%

 

518.29

%

 

$

43,513

 

0.29

%

 

324.22

%

 

$

47,380

 

0.35

%

 

279.52

%

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2

 

Q1

 

Q4

 

Q3

 

Q2

 

Six Months Ended

June 30,

 

2025

 

2025

 

2024

 

2024

 

2024

 

2025

 

2024

Loan type

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial, including specialized lending

$

3,871

 

 

$

3,231

 

 

$

3,653

 

 

$

5,056

 

 

$

5,665

 

 

$

7,102

 

 

$

9,337

 

Multifamily

 

—

 

 

 

3,834

 

 

 

—

 

 

 

2,167

 

 

 

1,433

 

 

 

3,834

 

 

 

1,906

 

Commercial real estate owner occupied

 

411

 

 

 

16

 

 

 

339

 

 

 

4

 

 

 

—

 

 

 

427

 

 

 

22

 

Commercial real estate non-owner occupied

 

—

 

 

 

—

 

 

 

145

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Construction

 

(3

)

 

 

(3

)

 

 

—

 

 

 

(3

)

 

 

(7

)

 

 

(6

)

 

 

(7

)

Residential

 

(4

)

 

 

—

 

 

 

(18

)

 

 

(21

)

 

 

(20

)

 

 

(4

)

 

 

(2

)

Installment

 

8,840

 

 

 

10,066

 

 

 

10,493

 

 

 

9,841

 

 

 

11,640

 

 

 

18,906

 

 

 

25,423

 

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

$

13,115

 

 

$

17,144

 

 

$

14,612

 

 

$

17,044

 

 

$

18,711

 

 

$

30,259

 

 

$

36,679

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

June 30,

Q2 2025

 

Q1 2025

 

Q4 2024

 

Q3 2024

 

Q2 2024

 

2025

 

2024

(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

$

55,846

 

$

1.73

 

 

$

9,523

 

$

0.29

 

$

23,266

 

$

0.71

 

 

$

42,937

 

$

1.31

 

 

$

54,300

 

$

1.66

 

 

$

65,369

 

$

2.02

 

 

$

100,226

 

$

3.06

 

Reconciling items (after tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance expense

 

—

 

 

—

 

 

 

—

 

 

—

 

 

1,198

 

 

0.04

 

 

 

540

 

 

0.02

 

 

 

1,928

 

 

0.06

 

 

 

—

 

 

—

 

 

 

1,928

 

 

0.06

 

Impairment loss on debt securities

 

—

 

 

—

 

 

 

39,875

 

 

1.23

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

39,875

 

 

1.23

 

 

 

—

 

 

—

 

Legal settlement

 

—

 

 

—

 

 

 

—

 

 

—

 

 

157

 

 

0.00

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

(Gains) losses on investment securities

 

1,388

 

 

0.04

 

 

 

(124

)

 

0.00

 

 

20,035

 

 

0.62

 

 

 

(322

)

 

(0.01

)

 

 

561

 

 

0.02

 

 

 

1,264

 

 

0.04

 

 

 

618

 

 

0.02

 

Derivative credit valuation adjustment

 

—

 

 

—

 

 

 

210

 

 

0.01

 

 

(306

)

 

(0.01

)

 

 

185

 

 

0.01

 

 

 

(44

)

 

0.00

 

 

 

210

 

 

0.01

 

 

 

125

 

 

0.00

 

FDIC special assessment

 

—

 

 

—

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

138

 

 

0.00

 

 

 

—

 

 

—

 

 

 

518

 

 

0.02

 

Unrealized (gain) on equity method investments

 

—

 

 

—

 

 

 

—

 

 

—

 

 

(292

)

 

(0.01

)

 

 

—

 

 

—

 

 

 

(8,316

)

 

(0.25

)

 

 

—

 

 

—

 

 

 

(8,316

)

 

(0.25

)

Loss on redemption of preferred stock

 

1,908

 

 

0.06

 

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

1,908

 

 

0.06

 

 

 

—

 

 

—

 

Unrealized (gain) loss on loans held for sale

 

(223

)

 

(0.01

)

 

 

518

 

 

0.02

 

 

110

 

 

0.00

 

 

 

498

 

 

0.02

 

 

 

—

 

 

—

 

 

 

295

 

 

0.01

 

 

 

—

 

 

—

 

Loan program termination fees

 

(772

)

 

(0.02

)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

(772

)

 

(0.02

)

 

 

—

 

 

—

 

Core earnings

$

58,147

 

$

1.80

 

 

$

50,002

 

$

1.54

 

$

44,168

 

$

1.36

 

 

$

43,838

 

$

1.34

 

 

$

48,567

 

$

1.49

 

 

$

108,149

 

$

3.33

 

 

$

95,099

 

$

2.90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

$

58,147

 

$

1.80

 

 

$

50,002

 

$

1.54

 

$

44,168

 

$

1.36

 

 

$

41,381

 

$

1.26

 

 

$

48,567

 

$

1.49

 

 

$

108,149

 

$

3.33

 

 

$

103,704

 

$

3.16

 

 

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

 

 

 

 

 

 

 

 

 

 

Six Months Ended

June 30,

(Dollars in thousands, except per share data)

Q2 2025

 

Q1 2025

 

Q4 2024

 

Q3 2024

 

Q2 2024

 

2025

 

2024

GAAP net income

$

60,939

 

 

$

12,912

 

 

$

26,915

 

 

$

46,743

 

 

$

58,085

 

 

$

73,851

 

 

$

107,811

 

Reconciling items (after tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance expense

 

—

 

 

 

—

 

 

 

1,198

 

 

 

540

 

 

 

1,928

 

 

 

—

 

 

 

1,928

 

Impairment loss on debt securities

 

—

 

 

 

39,875

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

39,875

 

 

 

—

 

Legal settlement

 

—

 

 

 

—

 

 

 

157

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

(Gains) losses on investment securities

 

1,388

 

 

 

(124

)

 

 

20,035

 

 

 

(322

)

 

 

561

 

 

 

1,264

 

 

 

618

 

Derivative credit valuation adjustment

 

—

 

 

 

210

 

 

 

(306

)

 

 

185

 

 

 

(44

)

 

 

210

 

 

 

125

 

FDIC special assessment

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

138

 

 

 

—

 

 

 

518

 

Unrealized (gain) on equity method investments

 

—

 

 

 

—

 

 

 

(292

)

 

 

—

 

 

 

(8,316

)

 

 

—

 

 

 

(8,316

)

Unrealized (gain) loss on loans held for sale

 

(223

)

 

 

518

 

 

 

110

 

 

 

498

 

 

 

—

 

 

 

295

 

 

 

—

 

Loan program termination fees

 

(772

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(772

)

 

 

—

 

Core net income

$

61,332

 

 

$

53,391

 

 

$

47,817

 

 

$

47,644

 

 

$

52,352

 

 

$

114,723

 

 

$

102,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 net income (adjusted for one-time non-interest expense items)

$

61,332

 

 

$

53,391

 

 

$

47,817

 

 

$

45,187

 

 

$

52,352

 

 

$

114,723

 

 

$

111,289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

$

22,362,989

 

 

$

22,314,963

 

 

$

22,179,970

 

 

$

21,230,404

 

 

$

20,985,203

 

 

$

22,339,108

 

 

$

21,160,216

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core return on average assets

 

1.10

%

 

 

0.97

%

 

 

0.86

%

 

 

0.89

%

 

 

1.00

%

 

 

1.04

%

 

 

0.98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted core return on average assets (adjusted for one-time non-interest expense items)

 

1.10

%

 

 

0.97

%

 

 

0.86

%

 

 

0.85

%

 

 

1.00

%

 

 

1.04

%

 

 

1.06

%

 
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

 

 

 

 

 

 

 

 

 

 

Six Months Ended

June 30,

(Dollars in thousands, except per share data)

Q2 2025

 

Q1 2025

 

Q4 2024

 

Q3 2024

 

Q2 2024

 

2025

 

2024

GAAP net income

$

60,939

 

 

$

12,912

 

 

$

26,915

 

 

$

46,743

 

 

$

58,085

 

 

$

73,851

 

 

$

107,811

 

Reconciling items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

17,963

 

 

 

(1,024

)

 

 

8,946

 

 

 

(725

)

 

 

19,032

 

 

 

16,939

 

 

 

34,683

 

Provision (benefit) for credit losses

 

20,781

 

 

 

28,297

 

 

 

21,194

 

 

 

17,066

 

 

 

18,121

 

 

 

49,078

 

 

 

35,191

 

Provision (benefit) for credit losses on unfunded commitments

 

1,594

 

 

 

1,208

 

 

 

(664

)

 

 

642

 

 

 

1,594

 

 

 

2,802

 

 

 

2,024

 

Severance expense

 

—

 

 

 

—

 

 

 

1,595

 

 

 

659

 

 

 

2,560

 

 

 

—

 

 

 

2,560

 

Impairment loss on debt securities

 

—

 

 

 

51,319

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

51,319

 

 

 

—

 

Legal settlement

 

—

 

 

 

—

 

 

 

209

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

(Gains) losses on investment securities

 

1,797

 

 

 

(160

)

 

 

26,678

 

 

 

(394

)

 

 

744

 

 

 

1,637

 

 

 

819

 

Derivative credit valuation adjustment

 

—

 

 

 

270

 

 

 

(407

)

 

 

226

 

 

 

(58

)

 

 

270

 

 

 

164

 

FDIC special assessment

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

183

 

 

 

—

 

 

 

683

 

Unrealized (gain) on equity method investments

 

—

 

 

 

—

 

 

 

(389

)

 

 

—

 

 

 

(11,041

)

 

 

—

 

 

 

(11,041

)

Unrealized (gain) loss on loans held for sale

 

(289

)

 

 

667

 

 

 

147

 

 

 

607

 

 

 

—

 

 

 

378

 

 

 

—

 

Loan program termination fees

 

(1,000

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,000

)

 

 

—

 

Core pre-tax pre-provision net income

$

101,785

 

 

$

93,489

 

 

$

84,224

 

 

$

64,824

 

 

$

89,220

 

 

$

195,274

 

 

$

172,894

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

$

101,785

 

 

$

93,489

 

 

$

84,224

 

 

$

61,827

 

 

$

89,220

 

 

$

195,274

 

 

$

184,208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

$

22,362,989

 

 

$

22,314,963

 

 

$

22,179,970

 

 

$

21,230,404

 

 

$

20,985,203

 

 

$

22,339,108

 

 

$

21,160,216

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core pre-tax pre-provision ROAA

 

1.83

%

 

 

1.70

%

 

 

1.51

%

 

 

1.21

%

 

 

1.71

%

 

 

1.76

%

 

 

1.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items)

 

1.83

%

 

 

1.70

%

 

 

1.51

%

 

 

1.16

%

 

 

1.71

%

 

 

1.76

%

 

 

 

1.75

%

 

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

 

 

 

 

 

 

 

 

 

 

Six Months Ended

June 30,

(Dollars in thousands, except per share data)

Q2 2025

 

Q1 2025

 

Q4 2024

 

Q3 2024

 

Q2 2024

 

2025

 

2024

GAAP net income to common shareholders

$

55,846

 

 

$

9,523

 

 

$

23,266

 

 

$

42,937

 

 

$

54,300

 

 

$

65,369

 

 

$

100,226

 

Reconciling items (after tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance expense

 

—

 

 

 

—

 

 

 

1,198

 

 

 

540

 

 

 

1,928

 

 

 

—

 

 

 

1,928

 

Impairment loss on debt securities

 

—

 

 

 

39,875

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

39,875

 

 

 

—

 

Legal settlement

 

—

 

 

 

—

 

 

 

157

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

(Gains) losses on investment securities

 

1,388

 

 

 

(124

)

 

 

20,035

 

 

 

(322

)

 

 

561

 

 

 

1,264

 

 

 

618

 

Derivative credit valuation adjustment

 

—

 

 

 

210

 

 

 

(306

)

 

 

185

 

 

 

(44

)

 

 

210

 

 

 

125

 

FDIC special assessment

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

138

 

 

 

—

 

 

 

518

 

Unrealized (gain) on equity method investments

 

—

 

 

 

—

 

 

 

(292

)

 

 

—

 

 

 

(8,316

)

 

 

—

 

 

 

(8,316

)

Loss on redemption of preferred stock

 

1,908

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,908

 

 

 

—

 

Unrealized (gain) loss on loans held for sale

 

(223

)

 

 

518

 

 

 

110

 

 

 

498

 

 

 

—

 

 

 

295

 

 

 

—

 

Loan program termination fees

 

(772

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(772

)

 

 

—

 

Core earnings

$

58,147

 

 

$

50,002

 

 

$

44,168

 

 

$

43,838

 

 

$

48,567

 

 

$

108,149

 

 

$

95,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

$

58,147

 

 

$

50,002

 

 

$

44,168

 

 

$

41,381

 

 

$

48,567

 

 

$

108,149

 

 

$

103,704

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total common shareholders’ equity

$

1,751,037

 

 

$

1,730,910

 

 

$

1,683,838

 

 

$

1,636,242

 

 

$

1,576,595

 

 

$

1,741,029

 

 

$

1,552,903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core return on average common equity

 

13.32

%

 

 

11.72

%

 

 

10.44

%

 

 

10.66

%

 

 

12.39

%

 

 

12.53

%

 

 

12.32

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted core return on average common equity (adjusted for one-time non-interest expense items)

 

13.32

%

 

 

11.72

%

 

 

10.44

%

 

 

10.06

%

 

 

12.39

%

 

 

12.53

%

 

 

13.43

%

 
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

 

 

 

 

 

 

 

 

 

 

Six Months Ended

June 30,

(Dollars in thousands, except per share data)

Q2 2025

 

Q1 2025

 

Q4 2024

 

Q3 2024

 

Q2 2024

 

2025

 

2024

GAAP net income to common shareholders

$

55,846

 

 

$

9,523

 

 

$

23,266

 

 

$

42,937

 

 

$

54,300

 

 

$

65,369

 

 

$

100,226

 

Reconciling items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

17,963

 

 

 

(1,024

)

 

 

8,946

 

 

 

(725

)

 

 

19,032

 

 

 

16,939

 

 

 

34,683

 

Provision (benefit) for credit losses

 

20,781

 

 

 

28,297

 

 

 

21,194

 

 

 

17,066

 

 

 

18,121

 

 

 

49,078

 

 

 

35,191

 

Provision (benefit) for credit losses on unfunded commitments

 

1,594

 

 

 

1,208

 

 

 

(664

)

 

 

642

 

 

 

1,594

 

 

 

2,802

 

 

 

2,024

 

Severance expense

 

—

 

 

 

—

 

 

 

1,595

 

 

 

659

 

 

 

2,560

 

 

 

—

 

 

 

2,560

 

Impairment loss on debt securities

 

—

 

 

 

51,319

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

51,319

 

 

 

—

 

Legal settlement

 

—

 

 

 

—

 

 

 

209

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

(Gains) losses on investment securities

 

1,797

 

 

 

(160

)

 

 

26,678

 

 

 

(394

)

 

 

744

 

 

 

1,637

 

 

 

819

 

Derivative credit valuation adjustment

 

—

 

 

 

270

 

 

 

(407

)

 

 

226

 

 

 

(58

)

 

 

270

 

 

 

164

 

FDIC special assessment

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

183

 

 

 

—

 

 

 

683

 

Unrealized (gain) on equity method investments

 

—

 

 

 

—

 

 

 

(389

)

 

 

—

 

 

 

(11,041

)

 

 

—

 

 

 

(11,041

)

Loss on redemption of preferred stock

 

1,908

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,908

 

 

 

—

 

Unrealized (gain) loss on loans held for sale

 

(289

)

 

 

667

 

 

 

147

 

 

 

607

 

 

 

—

 

 

 

378

 

 

 

—

 

Loan program termination fees

 

(1,000

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,000

)

 

 

—

 

Core pre-tax pre-provision net income available to common shareholders

$

98,600

 

 

$

90,100

 

 

$

80,575

 

 

$

61,018

 

 

$

85,435

 

 

$

188,700

 

 

$

165,309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 available to common shareholders

$

98,600

 

 

$

90,100

 

 

$

80,575

 

 

$

58,021

 

 

$

85,435

 

 

$

188,700

 

 

$

176,623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total common shareholders’ equity

$

1,751,037

 

 

$

1,730,910

 

 

$

1,683,838

 

 

$

1,636,242

 

 

$

1,576,595

 

 

$

1,741,029

 

 

$

1,552,903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core pre-tax pre-provision ROCE

 

22.59

%

 

 

21.11

%

 

 

19.04

%

 

 

14.84

%

 

 

21.79

%

 

 

21.86

%

 

 

21.41

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted core pre-tax pre-provision ROCE (adjusted for one-time non-interest expense items)

 

22.59

%

 

 

21.11

%

 

 

19.04

%

 

 

14.11

%

 

 

21.79

%

 

 

21.86

%

 

 

 

22.87

%

 

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

 

 

 

 

 

 

 

 

 

 

Six Months Ended

June 30,

(Dollars in thousands, except per share data)

Q2 2025

 

Q1 2025

 

Q4 2024

 

Q3 2024

 

Q2 2024

 

2025

 

2024

GAAP net interest income

$

176,703

 

 

$

167,446

 

 

$

167,821

 

 

$

158,545

 

 

$

167,653

 

 

$

344,149

 

 

$

328,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP non-interest income (loss)

$

29,606

 

 

$

(24,490

)

 

$

(391

)

 

$

8,557

 

 

$

31,037

 

 

$

5,116

 

 

$

52,268

 

(Gains) losses on investment securities

 

1,797

 

 

 

(160

)

 

 

26,678

 

 

 

(394

)

 

 

744

 

 

 

1,637

 

 

 

819

 

Derivative credit valuation adjustment

 

—

 

 

 

270

 

 

 

(407

)

 

 

226

 

 

 

(58

)

 

 

270

 

 

 

164

 

Unrealized (gain) on equity method investments

 

—

 

 

 

—

 

 

 

(389

)

 

 

—

 

 

 

(11,041

)

 

 

—

 

 

 

(11,041

)

Unrealized (gain) loss on loans held for sale

 

(289

)

 

 

667

 

 

 

147

 

 

 

607

 

 

 

—

 

 

 

378

 

 

 

—

 

Impairment loss on debt securities

 

—

 

 

 

51,319

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

51,319

 

 

 

—

 

Loan program termination fees

 

(1,000

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,000

)

 

 

—

 

Core non-interest income

 

30,114

 

 

 

27,606

 

 

 

25,638

 

 

 

8,996

 

 

 

20,682

 

 

 

57,720

 

 

 

42,210

 

Core revenue

$

206,817

 

 

$

195,052

 

 

$

193,459

 

 

$

167,541

 

 

$

188,335

 

 

$

401,869

 

 

$

370,248

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP non-interest expense

$

106,626

 

 

$

102,771

 

 

$

110,375

 

 

$

104,018

 

 

$

103,452

 

 

$

209,397

 

 

$

202,621

 

Severance expense

 

—

 

 

 

—

 

 

 

(1,595

)

 

 

(659

)

 

 

(2,560

)

 

 

—

 

 

 

(2,560

)

FDIC special assessment

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(183

)

 

 

—

 

 

 

(683

)

Legal settlement

 

—

 

 

 

—

 

 

 

(209

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Core non-interest expense

$

106,626

 

 

$

102,771

 

 

$

108,571

 

 

$

103,359

 

 

$

100,709

 

 

$

209,397

 

 

$

199,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

106,626

 

 

$

102,771

 

 

$

108,571

 

 

$

106,356

 

 

$

100,709

 

 

$

209,397

 

 

$

188,064

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core efficiency ratio (1)

 

51.56

%

 

 

52.69

%

 

 

56.12

%

 

 

61.69

%

 

 

53.47

%

 

 

52.11

%

 

 

53.85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted core efficiency ratio (adjusted for one-time non-interest expense items) (2)

 

51.56

%

 

 

52.69

%

 

 

56.12

%

 

 

63.48

%

 

 

53.47

%

 

 

52.11

%

 

 

50.79

%

(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.

 
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)

 

Tangible Common Equity to Tangible Assets - Customers Bancorp

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

Q2 2025

 

Q1 2025

 

Q4 2024

 

Q3 2024

 

Q2 2024

GAAP total shareholders’ equity

$

1,863,558

 

 

$

1,864,560

 

 

$

1,836,683

 

 

$

1,801,180

 

 

$

1,746,865

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Preferred stock

 

(82,201

)

 

 

(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

$

1,777,728

 

 

$

1,723,137

 

 

$

1,695,260

 

 

$

1,659,757

 

 

$

1,605,442

 

 

 

 

 

 

 

 

 

 

 

GAAP total assets

$

22,550,800

 

 

$

22,423,044

 

 

$

22,308,241

 

 

$

21,456,082

 

 

$

20,942,975

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Goodwill and other intangibles

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

 

 

(3,629

)

Tangible assets

$

22,547,171

 

 

$

22,419,415

 

 

$

22,304,612

 

 

$

21,452,453

 

 

$

20,939,346

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

7.9

%

 

 

7.7

%

 

 

7.6

%

 

 

7.7

%

 

 

7.7

%

Tangible Book Value per Common Share - Customers Bancorp

 

 

 

 

 

 

 

 

 

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

Q2 2025

 

Q1 2025

 

Q4 2024

 

Q3 2024

 

Q2 2024

GAAP total shareholders’ equity

$

1,863,558

 

 

$

1,864,560

 

 

$

1,836,683

 

 

$

1,801,180

 

 

$

1,746,865

 

Reconciling Items:

 

 

 

 

 

 

 

 

 

Preferred stock

 

(82,201

)

 

 

(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

$

1,777,728

 

 

$

1,723,137

 

 

$

1,695,260

 

 

$

1,659,757

 

 

$

1,605,442

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

31,606,934

 

 

 

31,479,132

 

 

 

31,346,507

 

 

 

31,342,107

 

 

 

31,667,655

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per common share

$

56.24

 

 

$

54.74

 

 

$

54.08

 

 

$

52.96

 

 

$

50.70

 

 

Jordan Baucum, Head of Corporate Communications 951-608-8314

Source: Customers Bancorp, Inc.

Stock CUBI logo
Customers Bancorp Inc

NYSE:CUBI

CUBI Rankings

#2999 Ranked by Market Cap
N/A Ranked by Dividends

CUBI Latest News

Jul 25, 2025
Customers Bancorp Announces Executive Leadership Transition
Jul 14, 2025
Customers Bancorp, Inc. Hosts Second Quarter 2025 Earnings Webcast Friday, July 25, 2025
Jun 4, 2025
Save® Collaborates With Customers Bank for the Launch of a Sub-advisory Program for Wealth Managers Seeking Cash Solutions
May 28, 2025
Customers Bancorp Shareholders Approve All Proposals in Online Annual Meeting
May 14, 2025
Customers Bancorp, Inc. Announces Full Redemption of Series E Preferred Stock

CUBI Latest SEC Filings

Jul 25, 2025
[Form 4] CUSTOMERS BANCORP INC Insider Trading Activity
Jul 25, 2025
[8-K] CUSTOMERS BANCORP INC Reports Material Event
Jul 24, 2025
[8-K] CUSTOMERS BANCORP INC Reports Material Event
Jul 18, 2025
[SCHEDULE 13G/A] CUSTOMERS BANCORP INC SEC Filing
Jul 11, 2025
[Form 4/A] CUSTOMERS BANCORP INC Amended Insider Trading Activity

CUBI Stock Data

1.98B
29.20M
7.37%
90.66%
5.33%
Banks - Regional
State Commercial Banks
Link
United States
WEST READING

Related Articles

Continue reading with these related stories

View All Latest News