Customers Bancorp Reports Results for Second Quarter 2022
WEST READING, Pa.--(BUSINESS WIRE)-- Customers Bancorp, Inc. (NYSE:CUBI)
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Second Quarter 2022 Results |
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Earnings |
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Earnings Per Share |
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Return on Assets |
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Return on Common
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$56.5 million |
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$1.68 |
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1.2% |
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18.2% |
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Net Income |
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Diluted Earnings Per Share |
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ROAA |
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ROCE |
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$59.4 million |
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$1.77 |
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1.2% |
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19.1% |
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Core Earnings* |
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Core Earnings Per Diluted Share* |
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Core ROAA* |
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Core ROCE* |
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$46.3 million |
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$1.38 |
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2.1% |
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33.4% |
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Core Earnings, excluding PPP* |
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Core Earnings Per Diluted Share, excluding PPP* |
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Pre-tax and Pre-provision Adjusted ROAA* |
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Pre-tax and Pre-provision Adjusted ROCE* |
Second Quarter 2022 Highlights
- Q2 2022 net income available to common shareholders was $56.5 million, or $1.68 per diluted share, down 2.6% over Q2 2021.
- Q2 2022 adjusted pre-tax pre-provision net income* was $105.7 million, up 22% over Q2 2021.
- Q2 2022 core earnings* were $59.4 million, or $1.77 per diluted share, up 0.1% over Q2 2021.
- Q2 2022 core earnings excluding Paycheck Protection Program* ("PPP") were $46.3 million, or $1.38 per diluted share, up 32.3% over Q2 2021.
- Q2 2022 ROAA was 1.17% and Core ROAA* was 1.23%. Q2 2021 ROAA was 1.27% and Core ROAA* was 1.30%.
- Q2 2022 ROCE was 18.2% and Core ROCE* was 19.1%. Q2 2021 ROCE was 23.2% and Core ROCE* was 23.7%.
- Q2 2022 adjusted pre-tax pre-provision ROAA* was 2.11%. Q2 2021 adjusted pre-tax pre-provision ROAA* was 1.80%.
- Year-over-year loan growth (excluding PPP loans and loans to mortgage companies*) was $4.4 billion or 56.6%, led by our low-risk variable rate specialty lending verticals.
- Year-over-year commercial and industrial (C&I) loans and leases growth, including specialty lending, of $3.3 billion (up 145.8%), multifamily loan growth of $515.4 million (up 34.4%), and consumer loan increase of $500.8 million (up 26.2%).
- Q2 2022 net interest margin, tax equivalent* increased 41 basis points from Q2 2021 to 3.39%. Q2 2022 net interest margin, tax equivalent, excluding the impact of PPP loans* increased 2 basis points from Q2 2021 to 3.32%.
- Year-over-year deposit growth was $3.1 billion, up 22.1%. Total demand deposits increased $4.4 billion, or 64.0% year-over-year. This increase included CBIT-related deposits with a balance of $2.1 billion at June 30, 2022, up $0.3 billion from March 31, 2022.
- Onboarded 90 new CBIT customers in Q2 2022, bringing total customers to 190.
- Q2 2022 efficiency ratio was 42.14% compared to 46.59% for Q2 2021. Q2 2022 core efficiency ratio* was 41.74% compared to 44.33% in Q2 2021.
- Q2 2022 provision for credit losses on loans and leases of $24.2 million was largely driven by strong loan growth as asset quality remains exceptional and compares to $15.3 million in Q1 2022 and $3.3 million in Q2 2021.
- Non-performing assets were $28.2 million, or 0.14% of total assets, at June 30, 2022 compared to $43.9 million, or 0.23% of total assets, at March 31, 2022 and $46.9 million, or 0.24% of total assets, at June 30, 2021. Allowance for credit losses on loans and leases equaled 558% of non-performing loans at June 30, 2022, compared to 333% at March 31, 2022 and 270% at June 30, 2021.
- Well positioned to support growth in 2022 and 2023 and expect to meet or beat projections of core earnings (excluding PPP)* between $4.75 - $5.00 in 2022 and over $6.00 in 2023.
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* Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount is included at the end of this document. |
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CEO Commentary
West Reading, PA, July 27, 2022 - “We continued to perform well in the second quarter and are extremely pleased with our results for the first half of 2022,” remarked Customers Bancorp Chairman and CEO, Jay Sidhu. “Despite the challenging macro and geopolitical environment, we remain laser focused on executing on our strategy which has not changed. Our core earnings per share, excluding PPP* were up over 32.3% year-over-year. Core ROAA* was 1.23% and core ROCE* was 19.1%. We continue to responsibly deliver remarkable organic loan growth without sacrificing credit quality. Our core loans* increased $2.2 billion in Q2 2022, up 18.7% from Q1 2022, and well above our $500 million average quarterly target. Nearly all of this growth was in low-risk specialty lending verticals and was predominately floating rate as we manage overall asset sensitivity. Asset quality remains exceptional and credit reserves are strong. Continuing the momentum from record 2021 performance and strong results for the first half of 2022, our loan and deposit pipelines remain robust, a testament to our customer centric business model supported by best-in-class service and technology. We remain very excited and optimistic about our future,” Mr. Jay Sidhu continued.
Financial Highlights
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At or Three Months Ended |
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Increase (Decrease) |
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Six Months Ended |
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Increase (Decrease) |
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(Dollars in thousands, except per share data and stock price data) |
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June 30,
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June 30,
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June 30,
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June 30,
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Profitability Metrics: |
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Net income available for common shareholders |
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$ |
56,519 |
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$ |
58,042 |
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$ |
(1,523) |
(2.6) % |
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$ |
131,415 |
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$ |
91,246 |
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$ |
40,169 |
44.0 % |
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Diluted earnings per share |
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$ |
1.68 |
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$ |
1.72 |
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$ |
(0.04) |
(2.3) % |
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$ |
3.87 |
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$ |
2.74 |
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$ |
1.13 |
41.2 % |
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Core earnings* |
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$ |
59,367 |
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$ |
59,303 |
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$ |
64 |
0.1 % |
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$ |
134,777 |
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$ |
129,611 |
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$ |
5,166 |
4.0 % |
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Core earnings per share* |
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$ |
1.77 |
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$ |
1.76 |
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$ |
0.01 |
0.6 % |
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$ |
3.97 |
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$ |
3.89 |
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$ |
0.08 |
2.1 % |
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Core earnings, excluding PPP* |
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$ |
46,301 |
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$ |
34,991 |
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$ |
11,310 |
32.3 % |
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$ |
96,998 |
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$ |
80,220 |
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$ |
16,778 |
20.9 % |
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Core earnings per share, excluding PPP* |
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$ |
1.38 |
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$ |
1.04 |
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$ |
0.34 |
32.7 % |
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$ |
2.86 |
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$ |
2.41 |
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$ |
0.45 |
18.7 % |
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Return on average assets ("ROAA") |
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1.17 % |
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1.27 % |
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(0.10) |
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1.39 % |
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1.04 % |
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0.35 |
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Core ROAA* |
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1.23 % |
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1.30 % |
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(0.07) |
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1.43 % |
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1.45 % |
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(0.02) |
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Return on average common equity ("ROCE") |
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18.21 % |
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23.22 % |
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(5.01) |
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21.23 % |
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19.15 % |
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2.08 |
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Core ROCE* |
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19.13 % |
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23.72 % |
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(4.59) |
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21.77 % |
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27.20 % |
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(5.43) |
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Adjusted pre-tax pre-provision net income* |
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$ |
105,692 |
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$ |
86,467 |
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$ |
19,225 |
22.2 % |
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$ |
218,341 |
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$ |
173,236 |
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$ |
45,105 |
26.0 % |
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Net interest margin, tax equivalent* |
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3.39 % |
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2.98 % |
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0.41 |
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3.49 % |
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2.99 % |
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0.50 |
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Net interest margin, tax equivalent, excluding PPP loans* |
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3.32 % |
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3.30 % |
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0.02 |
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3.32 % |
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3.14 % |
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0.18 |
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Loan yield, excluding PPP* |
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4.56 % |
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4.36 % |
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0.20 |
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4.50 % |
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4.32 % |
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0.18 |
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Cost of deposits |
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0.54 % |
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0.47 % |
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0.07 |
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0.44 % |
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0.50 % |
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(0.06) |
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Efficiency ratio |
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42.14 % |
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46.59 % |
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(4.45) |
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40.76 % |
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47.64 % |
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(6.88) |
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Core efficiency ratio* |
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41.74 % |
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44.33 % |
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(2.59) |
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40.59 % |
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42.76 % |
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(2.17) |
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Balance Sheet Trends: |
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Total assets |
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$ |
20,251,996 |
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$ |
19,635,108 |
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$ |
616,888 |
3.1 % |
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Total assets, excluding PPP* |
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$ |
18,681,836 |
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$ |
13,330,052 |
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$ |
5,351,784 |
40.1 % |
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Total loans and leases |
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$ |
15,664,353 |
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$ |
16,967,022 |
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$ |
(1,302,669) |
(7.7) % |
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Total loans and leases, excluding PPP* |
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$ |
14,094,193 |
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$ |
10,661,966 |
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$ |
3,432,227 |
32.2 % |
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Non-interest bearing demand deposits |
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$ |
4,683,030 |
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$ |
2,699,869 |
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$ |
1,983,161 |
73.5 % |
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Total deposits |
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$ |
16,944,719 |
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$ |
13,873,939 |
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$ |
3,070,780 |
22.1 % |
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Capital Metrics: |
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Common Equity |
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$ |
1,215,596 |
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$ |
1,033,258 |
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$ |
182,338 |
17.6 % |
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Tangible Common Equity* |
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$ |
1,211,967 |
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$ |
1,029,405 |
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$ |
182,562 |
17.7 % |
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Tangible Common Equity to Tangible Assets* |
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5.99 % |
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5.24 % |
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0.75 |
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Tangible Common Equity to Tangible Assets, excluding PPP* |
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6.49 % |
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7.72 % |
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(1.23) |
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Tangible Book Value per common share* |
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$ |
37.35 |
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$ |
31.82 |
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$ |
5.53 |
17.4 % |
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Total risk based capital ratio (1) |
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12.6 % |
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13.3 % |
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(0.7) |
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(1) Total risk based capital ratio as of June 30, 2022 is an estimate. |
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* Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount is included at the end of this document. |
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Customers Bank Instant Token (CBITTM)
"Despite significant market volatility in the digital asset space during second quarter, we are very pleased with our progress to date. In Q2 2022, we onboarded 90 new CBIT-related customers to the Digital Bank, once again beating our internal target, and bringing total customers to 190. Our digital asset-related deposits stabilized in Q2 2022 and ended the quarter approximately $0.3 billion higher than Q1 2022. We continue to expect digital asset-related deposits to grow in 2022 as our pipelines remain strong, giving us an opportunity to further transform our deposits into a high quality, low-to-no cost, stable and growing deposit franchise. We believe our technology, compliance and customer service and support systems remain among the best in the country," commented Mr. Sam Sidhu, President and CEO of Customers Bank.
At June 30, 2022, $2.1 billion in core low-to-no cost demand deposits have been attracted to the Bank through this system.
Paycheck Protection Program (PPP)
We funded, either directly or indirectly, about 256,000 PPP loans totaling $5.2 billion in 2021, bringing total PPP loans funded to approximately 358,000 and $10.3 billion. We also earned close to $350 million of deferred origination fees from the SBA through the PPP loans, which is significantly accretive to our earnings and capital levels as these loans are forgiven by the government. In Q2 2022, we recognized $15 million of these fees in earnings, bringing total fees recognized to date to $307 million, resulting in approximately $43 million remaining to be recognized throughout 2022 and 2023. "As we've stated previously, it is difficult to predict the timing of PPP forgiveness. We continue to expect most of the fees to be recognized in 2022, with approximately two-thirds of the remaining fees to be recognized in the second half of this year," commented Customers Bancorp CFO, Carla Leibold.
Key Balance Sheet Trends
Loans and Leases
The following table presents the composition of total loans and leases as of the dates indicated:
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(Dollars in thousands) |
June 30, 2022 |
% of Total |
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March 31, 2022 |
% of Total |
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June 30, 2021 |
% of Total |
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Commercial: |
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Commercial & industrial, including specialty lending |
$ |
5,637,083 |
36.0 |
% |
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$ |
3,921,439 |
27.9 |
% |
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$ |
2,293,723 |
13.5 |
% |
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Multi-family |
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2,012,920 |
12.9 |
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1,705,027 |
12.1 |
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1,497,485 |
8.8 |
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Loans to mortgage companies |
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1,975,189 |
12.6 |
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1,830,121 |
13.0 |
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2,922,217 |
17.2 |
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Commercial real estate owner occupied |
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710,577 |
4.5 |
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701,893 |
5.0 |
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653,649 |
3.9 |
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Loans receivable, PPP |
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1,570,160 |
10.0 |
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2,195,902 |
15.6 |
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6,305,056 |
37.2 |
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Commercial real estate non-owner occupied |
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1,152,869 |
7.4 |
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1,140,311 |
8.1 |
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1,206,646 |
7.1 |
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Construction |
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195,687 |
1.2 |
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161,024 |
1.1 |
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179,198 |
1.1 |
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Total commercial loans and leases |
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13,254,485 |
84.6 |
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11,655,717 |
82.8 |
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15,057,974 |
88.8 |
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Consumer: |
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Residential |
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460,228 |
2.9 |
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469,426 |
3.3 |
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273,493 |
1.6 |
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Manufactured housing |
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48,570 |
0.3 |
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50,669 |
0.4 |
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57,904 |
0.3 |
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Installment |
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1,901,070 |
12.1 |
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1,897,706 |
13.5 |
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1,577,651 |
9.3 |
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Total consumer loans |
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2,409,868 |
15.4 |
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2,417,801 |
17.2 |
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1,909,048 |
11.2 |
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Total loans and leases |
$ |
15,664,353 |
100.0 |
% |
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$ |
14,073,518 |
100.0 |
% |
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$ |
16,967,022 |
100.0 |
% |
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C&I loans and leases, including specialty lending, increased $3.3 billion, or 145.8% year-over-year, to $5.6 billion. Practically all of the increases were in low-risk variable rate secured categories of Fund Finance and Lender Finance. Multi-family loans increased $515.4 million, or 34.4%, to $2.0 billion, consumer installment loans increased $323.4 million, or 20.5%, to $1.9 billion, residential loans increased $186.7 million, or 68.3%, to $460.2 million, commercial real estate owner occupied loans increased $56.9 million, or 8.7%, to $710.6 million and construction loans increased $16.5 million, or 9.2%, to $195.7 million. These increases in loans and leases were partially offset by a decrease in commercial real estate non-owner occupied loans of $53.8 million, or 4.5% year-over-year to $1.2 billion.
Allowance for Credit Losses on Loans and Leases
The following table presents allowance for credit losses on loans and leases information as of the dates and periods indicated:
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At or Three Months Ended |
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Increase
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At or Three Months Ended |
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Increase
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(Dollars in thousands) |
June 30, 2022 |
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March 31, 2022 |
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June 30, 2022 |
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June 30, 2021 |
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Allowance for credit losses on loans and leases |
$ |
156,530 |
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$ |
145,847 |
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$ |
10,683 |
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$ |
156,530 |
|
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$ |
125,436 |
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$ |
31,094 |
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Provision for credit losses on loans and leases |
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24,164 |
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|
15,269 |
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8,895 |
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24,164 |
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3,291 |
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20,873 |
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Net charge-offs (recoveries) |
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13,481 |
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7,226 |
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6,255 |
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13,481 |
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6,591 |
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|
6,890 |
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Annualized net charge-offs (recoveries) to average loans and leases |
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0.36 |
% |
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0.21 |
% |
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0.36 |
% |
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0.16 |
% |
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Coverage of credit loss reserves for loans and leases held for investment |
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1.14 |
% |
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|
1.18 |
% |
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1.14 |
% |
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|
0.89 |
% |
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Coverage of credit loss reserves for loans and leases held for investment, excluding PPP* |
|
1.28 |
% |
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1.44 |
% |
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1.28 |
% |
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|
1.61 |
% |
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* Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount is included at the end of this document. |
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Provision for Credit Losses
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|
Three Months Ended |
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Increase
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(Dollars in thousands) |
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June 30, 2022 |
|
March 31, 2022 |
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Provision for credit losses on loans and leases |
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$ |
24,164 |
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$ |
15,269 |
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$ |
8,895 |
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Provision (benefit) for credit losses on unfunded commitments |
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|
608 |
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(109 |
) |
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|
717 |
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Provision (benefit) for credit losses on available for sale debt securities |
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(317 |
) |
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|
728 |
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(1,045 |
) |
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Total provision for credit losses |
$ |
24,455 |
|
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$ |
15,888 |
|
|
$ |
8,567 |
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|
||||||
The provision for credit losses on loans and leases in Q2 2022 was $24.2 million, compared to $15.3 million in Q1 2022. The provision in Q2 2022 was primarily to support loan growth. The provision (benefit) for credit losses for available for sale investment securities in Q2 2022 was a benefit to provision of $0.3 million compared to provision expense of $0.7 million in Q1 2022.
Asset Quality
The following table presents asset quality metrics as of the dates indicated:
|
(Dollars in thousands) |
June 30, 2022 |
|
March 31, 2022 |
|
Increase
|
|
June 30, 2022 |
|
June 30, 2021 |
|
Increase
|
||||||||||||
|
Non-performing assets ("NPAs"): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Nonaccrual / non-performing loans ("NPLs") |
$ |
28,064 |
|
|
$ |
43,778 |
|
|
$ |
(15,714 |
) |
|
$ |
28,064 |
|
|
$ |
46,465 |
|
|
$ |
(18,401 |
) |
|
Non-performing assets |
|
28,150 |
|
|
|
43,864 |
|
|
|
(15,714 |
) |
|
|
28,150 |
|
|
|
46,932 |
|
|
|
(18,782 |
) |
|
NPLs to total loans and leases (1) |
|
0.18 |
% |
|
|
0.31 |
% |
|
|
|
|
0.18 |
% |
|
|
0.27 |
% |
|
|
||||
|
Reserves to NPLs (1) |
|
557.76 |
% |
|
|
333.15 |
% |
|
|
|
|
557.76 |
% |
|
|
269.96 |
% |
|
|
||||
|
NPAs to total assets |
|
0.14 |
% |
|
|
0.23 |
% |
|
|
|
|
0.14 |
% |
|
|
0.24 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Loans and leases risk ratings: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Commercial loans and leases (1) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Pass |
$ |
9,355,846 |
|
|
$ |
7,274,294 |
|
|
$ |
2,081,552 |
|
|
$ |
9,355,846 |
|
|
$ |
5,381,909 |
|
|
$ |
3,973,937 |
|
|
Special Mention |
|
106,566 |
|
|
|
128,622 |
|
|
|
(22,056 |
) |
|
|
106,566 |
|
|
|
268,130 |
|
|
|
(161,564 |
) |
|
Substandard |
|
343,175 |
|
|
|
301,141 |
|
|
|
42,034 |
|
|
|
343,175 |
|
|
|
247,595 |
|
|
|
95,580 |
|
|
Total commercial loans and leases |
|
9,805,587 |
|
|
|
7,704,057 |
|
|
|
2,101,530 |
|
|
|
9,805,587 |
|
|
|
5,897,634 |
|
|
|
3,907,953 |
|
|
Consumer loans |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Performing |
|
2,392,852 |
|
|
|
2,399,860 |
|
|
|
(7,008 |
) |
|
|
2,392,852 |
|
|
|
1,858,204 |
|
|
|
534,648 |
|
|
Non-performing |
|
14,556 |
|
|
|
14,938 |
|
|
|
(382 |
) |
|
|
14,556 |
|
|
|
16,304 |
|
|
|
(1,748 |
) |
|
Total consumer loans |
|
2,407,408 |
|
|
|
2,414,798 |
|
|
|
(7,390 |
) |
|
|
2,407,408 |
|
|
|
1,874,508 |
|
|
|
532,900 |
|
|
Loans and leases receivable |
$ |
12,212,995 |
|
|
$ |
10,118,855 |
|
|
$ |
2,094,140 |
|
|
$ |
12,212,995 |
|
|
$ |
7,772,142 |
|
|
$ |
4,440,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(1) Excludes loan receivable, PPP, as PPP loans are fully guaranteed by the Small Business Administration.
Over the last decade, we have developed a suite of commercial loan products with one particularly important common denominator: relatively low credit risk assumption. The Bank’s C&I, loans to mortgage companies, specialty finance lines of business, and multi-family loans for example, are characterized by conservative underwriting standards and low loss rates. Because of this emphasis, the Bank’s credit quality to date has been healthy despite a highly adverse economic environment. Maintaining strong asset quality also requires a highly active portfolio monitoring process. In addition to frequent client outreach and monitoring at the individual loan level, we employ a bottom-up data driven approach to analyze the commercial portfolio. Exposure to industry segments and CRE significantly impacted by COVID-19 initially is not substantial.
Total consumer installment loans were approximately 9% of total assets at June 30, 2022 and were supported by an allowance for credit losses of $111.2 million. At June 30, 2022, our consumer installment portfolio had the following characteristics: average FICO score of 729, average debt-to-income of 17.4% and average borrower income of $102 thousand.
Non-performing loans at June 30, 2022 were 0.18% of total loans and leases, compared to 0.31% at March 31, 2022 and 0.27% at June 30, 2021.
Deposits and Borrowings
The following table presents the composition of our deposit portfolio as of the dates indicated:
|
(Dollars in thousands) |
June 30, 2022 |
% of Total |
|
March 31, 2022 |
% of Total |
|
June 30, 2021 |
% of Total |
|||||||||||
|
Demand, non-interest bearing |
$ |
4,683,030 |
27.6 |
% |
|
$ |
4,594,428 |
28.0 |
% |
|
$ |
2,699,869 |
19.5 |
% |
|||||
|
Demand, interest bearing |
|
6,644,398 |
39.2 |
|
|
|
5,591,468 |
34.1 |
|
|
|
4,206,355 |
30.3 |
|
|||||
|
Total demand deposits |
|
11,327,428 |
66.8 |
|
|
|
10,185,896 |
62.1 |
|
|
|
6,906,224 |
49.8 |
|
|||||
|
Savings |
|
640,062 |
3.8 |
|
|
|
802,395 |
4.9 |
|
|
|
1,431,756 |
10.3 |
|
|||||
|
Money market |
|
4,254,205 |
25.1 |
|
|
|
4,981,077 |
30.3 |
|
|
|
4,908,809 |
35.4 |
|
|||||
|
Time deposits |
|
723,024 |
4.3 |
|
|
|
446,192 |
2.7 |
|
|
|
627,150 |
4.5 |
|
|||||
|
Total deposits |
$ |
16,944,719 |
100.0 |
% |
|
$ |
16,415,560 |
100.0 |
% |
$ |
13,873,939 |
100.0 |
% |
||||||
Total deposits increased $3.1 billion, or 22.1%, to $16.9 billion at June 30, 2022 as compared to a year ago. Total demand deposits increased $4.4 billion, or 64.0%, to $11.3 billion. Time deposits increased $95.9 million, or 15.3%, to $723.0 million. These increases were offset, in part, by decreases in savings deposits of $791.7 million, or 55.3%, to $640.1 million and money market deposits of $654.6 million, or 13.3%, to $4.3 billion. The total cost of deposits increased by 7 basis points to 0.54% in Q2 2022 from 0.47% in the prior year.
Other borrowings remained relatively unchanged at $123.5 million at June 30, 2022 compared to the prior year due to the issuance of the Customers Bancorp 2.875% senior notes in August 2021, offset by the pay off at maturity of the Customers Bancorp 3.95% senior notes in June 2022.
Capital
The following table presents certain capital amounts and ratios as of the dates indicated:
|
(Dollars in thousands except per share data) |
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
||||||||
|
Customers Bancorp, Inc. |
|
|
|
|
|
||||||||
|
Common Equity |
$ |
1,215,596 |
|
|
$ |
1,239,612 |
|
|
$ |
1,033,258 |
|
||
|
Tangible Common Equity* |
|
1,211,967 |
|
|
|
1,235,934 |
|
|
|
1,029,405 |
|
||
|
Tangible Common Equity to Tangible Assets* |
|
5.99 |
% |
|
|
6.45 |
% |
|
|
5.24 |
% |
||
|
Tangible Common Equity to Tangible Assets, excluding PPP* |
|
6.49 |
% |
|
|
7.29 |
% |
|
|
7.72 |
% |
||
|
Tangible Book Value per common share* |
$ |
37.35 |
|
|
$ |
37.50 |
|
|
$ |
31.82 |
|
||
|
Total risk based capital ratio (1) |
|
12.6 |
% |
|
|
12.9 |
% |
|
|
13.3 |
% |
||
|
(1) Total risk-based capital ratio as of June 30, 2022 is an estimate. |
|
* Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount is included at the end of this document. |
Customers Bancorp's tangible common equity* increased $182.3 million to $1.2 billion at June 30, 2022 compared to a year ago, as earnings of $340.3 million more than offset a negative impact to accumulated other comprehensive income ("AOCI") from increased unrealized losses on investment securities of $130.9 million (net of taxes) and share buyback of $55.5 million. Similarly, tangible book value per common share* increased to $37.35 at June 30, 2022 from $31.82 at June 30, 2021. Customers remains well capitalized by all regulatory measures.
At the Customers Bancorp level, the total risk based capital ratio (estimate) and tangible common equity to tangible assets ratio ("TCE ratio"), excluding PPP loans*, were 12.6% and 6.49%, respectively, at June 30, 2022. "We expect our TCE ratio to be at or above 7.5% within the next three to four quarters," stated Mr. Sam Sidhu.
At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At June 30, 2022, estimated Tier 1 capital and total risk-based capital were 11.5% and 12.9% respectively.
Key Profitability Trends
Net Interest Income
Net interest income totaled $164.9 million in Q2 2022, an increase of $0.2 million from Q1 2022, primarily due to increased net interest income earned by the core bank, including increased interest income on investment securities and core loans* of $5.1 million and $28.1 million, respectively, mostly due to higher average balances. This increase was offset in part by lower PPP interest income of $16.3 million resulting from reduced recognition of deferred fees of $14.7 million driven by lower loan forgiveness in Q2 2022 and by dividend income of $5.2 million primarily from an equity investment distribution in Q1 2022. In addition, higher expenses paid on deposits, FHLB advances and other borrowings of $12.7 million resulted mainly from higher interest rates during Q2 2022. Excluding PPP loans, average interest-earning assets increased $1.7 billion. Interest-earning asset growth was primarily driven by increases in C&I loans and leases and multi-family loans, offset in part by a decrease in interest earning deposits. Compared to Q1 2022, total loan yields decreased 13 basis points to 4.54% primarily due to higher PPP yields driven by deferred fee recognition and average balances in Q1 2022. Excluding PPP loans, the Q2 2022 total loan yield was 13 basis points higher than Q1 2022 reflecting increased interest rates and the variable rate nature of the loan portfolio.
Non-Interest Income
The following table presents details of non-interest income for the periods indicated:
|
|
Three Months Ended |
|
Increase
|
||||||||
|
(Dollars in thousands) |
June 30, 2022 |
|
March 31, 2022 |
|
|||||||
|
Interchange and card revenue |
$ |
24 |
|
|
$ |
76 |
|
|
$ |
(52 |
) |
|
Deposit fees |
|
964 |
|
|
|
940 |
|
|
|
24 |
|
|
Commercial lease income |
|
6,592 |
|
|
|
5,895 |
|
|
|
697 |
|
|
Bank-owned life insurance |
|
1,947 |
|
|
|
8,326 |
|
|
|
(6,379 |
) |
|
Mortgage warehouse transactional fees |
|
1,883 |
|
|
|
2,015 |
|
|
|
(132 |
) |
|
Gain (loss) on sale of SBA and other loans |
|
1,542 |
|
|
|
1,507 |
|
|
|
35 |
|
|
Loan fees |
|
2,618 |
|
|
|
2,545 |
|
|
|
73 |
|
|
Mortgage banking income (loss) |
|
173 |
|
|
|
481 |
|
|
|
(308 |
) |
|
Gain (loss) on sale of investment securities |
|
(3,029 |
) |
|
|
(1,063 |
) |
|
|
(1,966 |
) |
|
Unrealized gain (loss) on investment securities |
|
(203 |
) |
|
|
(276 |
) |
|
|
73 |
|
|
Unrealized gain (loss) on derivatives |
|
821 |
|
|
|
964 |
|
|
|
(143 |
) |
|
Other |
|
(586 |
) |
|
|
(212 |
) |
|
|
(374 |
) |
|
Total non-interest income |
$ |
12,746 |
|
|
$ |
21,198 |
|
|
$ |
(8,452 |
) |
|
|
|
|
|
|
|
||||||
Non-interest income totaled $12.7 million for Q2 2022, a decrease of $8.5 million compared to Q1 2022. The decrease was primarily due to $6.4 million of death benefits from bank-owned life insurance policies in Q1 2022 and higher realized losses from the sale of investment securities of $2.0 million in Q2 2022 compared to Q1 2022.
Non-Interest Expense
The following table presents details of non-interest expense for the periods indicated:
|
|
Three Months Ended |
|
Increase
|
|||||||
|
(Dollars in thousands) |
June 30, 2022 |
|
March 31, 2022 |
|
||||||
|
Salaries and employee benefits |
$ |
25,334 |
|
$ |
26,607 |
|
|
$ |
(1,273 |
) |
|
Technology, communication and bank operations |
|
22,738 |
|
|
24,068 |
|
|
|
(1,330 |
) |
|
Professional services |
|
7,415 |
|
|
6,956 |
|
|
|
459 |
|
|
Occupancy |
|
4,279 |
|
|
3,050 |
|
|
|
1,229 |
|
|
Commercial lease depreciation |
|
5,552 |
|
|
4,942 |
|
|
|
610 |
|
|
FDIC assessments, non-income taxes and regulatory fees |
|
1,619 |
|
|
2,383 |
|
|
|
(764 |
) |
|
Loan servicing |
|
4,341 |
|
|
2,371 |
|
|
|
1,970 |
|
|
Loan workout |
|
179 |
|
|
(38 |
) |
|
|
217 |
|
|
Advertising and promotion |
|
353 |
|
|
315 |
|
|
|
38 |
|
|
Other |
|
4,395 |
|
|
3,153 |
|
|
|
1,242 |
|
|
Total non-interest expense |
$ |
76,205 |
|
$ |
73,807 |
|
|
$ |
2,398 |
|
|
|
|
|
|
|
|
|||||
The management of non-interest expenses remains a priority for us. However, this will not be at the expense of not making adequate investments with new technologies to support efficient and responsible growth.
Non-interest expenses totaled $76.2 million in Q2 2022, an increase of $2.4 million compared to Q1 2022. The increase was primarily attributable to $2.0 million in higher loan servicing costs for consumer loans, $0.9 million in one-time impairment charges included in occupancy primarily due to consolidation of five branches into other existing locations in Southeastern Pennsylvania, $0.7 million in higher provision for credit losses on unfunded commitments, $0.6 million in commercial lease depreciation due to growth in our leasing business and $0.5 million in professional fees primarily associated with the PPP loan forgiveness. These increases were offset in part by a $1.3 million decrease in technology, processing and deposit servicing-related expenses mostly due to lower deposit servicing and interchange maintenance fees and lower salaries and employee benefits of $1.3 million due to expense management initiatives.
Taxes
Income tax expense from continuing operations decreased by $0.4 million to $18.9 million in Q2 2022 from $19.3 million in Q1 2022 primarily due to a reduction in pre-tax income, partially offset by a decrease in excess tax benefits from restricted stock units that vested in Q1 2022. The effective tax rate from continuing operations for Q2 2022 was 24%, resulting in an effective tax rate of 22% for the six months ended June 30, 2022. Customers expects the full-year 2022 effective tax rate from continuing operations to be approximately 21% to 23%.
Outlook
“Looking ahead, we continue to project sustainable and responsible organic core growth and are very optimistic about the prospects of our company. We are focused on improving the quality of our balance sheet and deposit franchise and are not focused on growth just for the sake of growth. We continue to expect, on average, $500 million of quarterly loan growth and continued digital asset-related deposit growth by year-end 2022. Through a combination of revenue growth and prudent expense management we expect our efficiency ratio to be around 45% by early 2023. Customers Bancorp stock at the close of business on July 22, 2022 was trading at $38.02, only 1 times tangible book value* at June 30, 2022. We continue to expect to meet or beat projections of our core earnings (excluding PPP)* between $4.75 - $5.00 in 2022 and over $6.00 in 2023, two to three years ahead of our previous guidance of $6.00 by 2025/2026,” concluded Mr. Jay Sidhu.
|
|
|
|
|
|
|
* Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount is included at the end of this document. |
||||
Webcast
Date: Thursday, July 28, 2022
Time: 9:00 AM EDT
The live audio webcast, presentation slides, and earnings press release will be made available at https://www.customersbank.com/investor-relations/ and at the Customers Bancorp 2nd Quarter Earnings Webcast.
You may submit questions in advance of the live webcast by emailing our Communications Director, David Patti at [email protected]; questions may also be asked during the webcast through the webcast application.
The webcast will be archived for viewing on the Customers Bank Investor Relations page and available beginning approximately two hours after the conclusion of the live event.
Institutional Background
Customers Bancorp, Inc. (NYSE:CUBI) is a bank holding company located in West Reading, Pennsylvania engaged in banking and related businesses through its bank subsidiary, Customers Bank, a full-service bank with $20.3 billion in assets at June 30, 2022. A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender that provides a range of banking and lending services to small and medium-sized businesses, professionals, individuals and families. Services and products are available wherever permitted by law through mobile-first apps, online portals, and a network of offices and branches. Customers Bank provides blockchain-based digital payments via the Customers Bank Instant Token (CBITTM) which allows clients to make instant payments in U.S. dollars, 24 hours a day, 7 days a week, 365 days a year.
“Safe Harbor” Statement
In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Customers Bancorp, Inc.’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “project,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.’s control). Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause Customers Bancorp, Inc.’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements, including: the impact of the ongoing pandemic on the U.S. economy and customer behavior, the impact that changes in the economy have on the performance of our loan and lease portfolio, the market value of our investment securities, the continued success and acceptance of our blockchain payments system, the demand for our products and services and the availability of sources of funding; the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that affect market interest rates and the money supply, actions that we and our customers take in response to these developments and the effects such actions have on our operations, products, services and customer relationships, higher inflation and its impacts, and the effects of any changes in accounting standards or policies. Customers Bancorp, Inc. cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Customers Bancorp, Inc.’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K for the year ended December 31, 2021, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, including any amendments thereto, that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Customers Bancorp, Inc. does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Customers Bancorp, Inc. or by or on behalf of Customers Bank, except as may be required under applicable law.
Q2 2022 Overview
The following table presents a summary of key earnings and performance metrics for the quarter ended June 30, 2022 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
|
|
|||||||||||||||
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
GAAP Profitability Metrics: |
|
|||||||||||||||||||||
|
Net income available to common shareholders (from continuing and discontinued operations) |
$ |
56,519 |
|
$ |
74,896 |
|
$ |
98,647 |
|
$ |
110,241 |
|
$ |
58,042 |
|
$ |
131,415 |
|
$ |
91,246 |
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
|
||||||||||||||
|
Earnings per share - basic |
$ |
1.73 |
|
$ |
2.27 |
|
$ |
3.02 |
|
$ |
3.40 |
|
$ |
1.80 |
|
$ |
4.00 |
|
$ |
2.84 |
|
|
|
Earnings per share - diluted |
$ |
1.68 |
|
$ |
2.18 |
|
$ |
2.87 |
|
$ |
3.25 |
|
$ |
1.72 |
|
$ |
3.87 |
|
$ |
2.74 |
|
|
|
Book value per common share (1) |
$ |
37.46 |
|
$ |
37.61 |
|
$ |
37.32 |
|
$ |
35.24 |
|
$ |
31.94 |
|
$ |
37.46 |
|
$ |
31.94 |
|
|
|
CUBI stock price (1) |
$ |
33.90 |
|
$ |
52.14 |
|
$ |
65.37 |
|
$ |
43.02 |
|
$ |
38.99 |
|
$ |
33.90 |
|
$ |
38.99 |
|
|
|
CUBI stock price as % of book value (1) |
|
90 |
% |
|
139 |
% |
|
175 |
% |
|
122 |
% |
|
122 |
% |
|
90 |
% |
|
122 |
% |
|
|
Average shares outstanding - basic |
|
32,712,616 |
|
|
32,957,033 |
|
|
32,625,960 |
|
|
32,449,853 |
|
|
32,279,625 |
|
|
32,834,150 |
|
|
32,082,878 |
|
|
|
Average shares outstanding - diluted |
|
33,579,013 |
|
|
34,327,065 |
|
|
34,320,327 |
|
|
33,868,553 |
|
|
33,741,468 |
|
|
33,950,973 |
|
|
33,294,075 |
|
|
|
Shares outstanding (1) |
|
32,449,486 |
|
|
32,957,847 |
|
|
32,913,267 |
|
|
32,537,976 |
|
|
32,353,256 |
|
|
32,449,486 |
|
|
32,353,256 |
|
|
|
Return on average assets ("ROAA") |
|
1.17 |
% |
|
1.63 |
% |
|
2.08 |
% |
|
2.33 |
% |
|
1.27 |
% |
|
1.39 |
% |
|
1.04 |
% |
|
|
Return on average common equity ("ROCE") |
|
18.21 |
% |
|
24.26 |
% |
|
33.18 |
% |
|
40.82 |
% |
|
23.22 |
% |
|
21.23 |
% |
|
19.15 |
% |
|
|
Efficiency ratio |
|
42.14 |
% |
|
39.42 |
% |
|
38.70 |
% |
|
33.42 |
% |
|
46.59 |
% |
|
40.76 |
% |
|
47.64 |
% |
|
|
Non-GAAP Profitability Metrics (2): |
|
|
|
|
|
|
|
|
||||||||||||||
|
Core earnings |
$ |
59,367 |
|
$ |
75,410 |
|
$ |
101,213 |
|
$ |
113,876 |
|
$ |
59,303 |
|
$ |
134,777 |
|
$ |
129,611 |
|
|
|
Adjusted pre-tax pre-provision net income |
$ |
105,692 |
|
$ |
112,649 |
|
$ |
130,595 |
|
$ |
167,215 |
|
$ |
86,467 |
|
$ |
218,341 |
|
$ |
173,236 |
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
|
||||||||||||||
|
Core earnings per share - diluted |
$ |
1.77 |
|
$ |
2.20 |
|
$ |
2.95 |
|
$ |
3.36 |
|
$ |
1.76 |
|
$ |
3.97 |
|
$ |
3.89 |
|
|
|
Tangible book value per common share (1) |
$ |
37.35 |
|
$ |
37.50 |
|
$ |
37.21 |
|
$ |
35.12 |
|
$ |
31.82 |
|
$ |
37.35 |
|
$ |
31.82 |
|
|
|
CUBI stock price as % of tangible book value (1) |
|
91 |
% |
|
139 |
% |
|
176 |
% |
|
122 |
% |
|
123 |
% |
|
91 |
% |
|
123 |
% |
|
|
Core ROAA |
|
1.23 |
% |
|
1.64 |
% |
|
2.13 |
% |
|
2.35 |
% |
|
1.30 |
% |
|
1.43 |
% |
|
1.45 |
% |
|
|
Core ROCE |
|
19.13 |
% |
|
24.43 |
% |
|
34.04 |
% |
|
42.16 |
% |
|
23.72 |
% |
|
21.77 |
% |
|
27.20 |
% |
|
|
Adjusted ROAA - pre-tax and pre-provision |
|
2.11 |
% |
|
2.39 |
% |
|
2.70 |
% |
|
3.36 |
% |
|
1.80 |
% |
|
2.25 |
% |
|
1.85 |
% |
|
|
Adjusted ROCE - pre-tax and pre-provision |
|
33.37 |
% |
|
35.89 |
% |
|
43.25 |
% |
|
60.81 |
% |
|
33.27 |
% |
|
34.62 |
% |
|
34.95 |
% |
|
|
Net interest margin, tax equivalent |
|
3.39 |
% |
|
3.60 |
% |
|
4.14 |
% |
|
4.59 |
% |
|
2.98 |
% |
|
3.49 |
% |
|
2.99 |
% |
|
|
Net interest margin, tax equivalent, excluding PPP loans |
|
3.32 |
% |
|
3.32 |
% |
|
3.12 |
% |
|
3.24 |
% |
|
3.30 |
% |
|
3.32 |
% |
|
3.14 |
% |
|
|
Core efficiency ratio |
|
41.74 |
% |
|
39.47 |
% |
|
38.14 |
% |
|
30.36 |
% |
|
44.33 |
% |
|
40.59 |
% |
|
42.76 |
% |
|
|
Asset Quality: |
|
|
|
|
|
|
|
|
||||||||||||||
|
Net charge-offs |
$ |
13,481 |
|
$ |
7,226 |
|
$ |
7,582 |
|
$ |
7,104 |
|
$ |
6,591 |
|
$ |
20,707 |
|
$ |
19,112 |
|
|
|
Annualized net charge-offs to average total loans and leases |
|
0.36 |
% |
|
0.21 |
% |
|
0.21 |
% |
|
0.17 |
% |
|
0.16 |
% |
|
0.29 |
% |
|
0.24 |
% |
|
|
Non-performing loans ("NPLs") to total loans and leases (1) |
|
0.18 |
% |
|
0.31 |
% |
|
0.34 |
% |
|
0.34 |
% |
|
0.27 |
% |
|
0.18 |
% |
|
0.27 |
% |
|
|
Reserves to NPLs (1) |
|
557.76 |
% |
|
333.15 |
% |
|
277.72 |
% |
|
252.68 |
% |
|
269.96 |
% |
|
557.76 |
% |
|
269.96 |
% |
|
|
Non-performing assets ("NPAs") to total assets |
|
0.14 |
% |
|
0.23 |
% |
|
0.25 |
% |
|
0.27 |
% |
|
0.24 |
% |
|
0.14 |
% |
|
0.24 |
% |
|
|
Customers Bank Capital Ratios (3): |
|
|
|
|
|
|
|
|
||||||||||||||
|
Common equity Tier 1 capital to risk-weighted assets |
|
11.47 |
% |
|
11.60 |
% |
|
11.83 |
% |
|
12.77 |
% |
|
12.40 |
% |
|
11.47 |
% |
|
12.40 |
% |
|
|
Tier 1 capital to risk-weighted assets |
|
11.47 |
% |
|
11.60 |
% |
|
11.83 |
% |
|
12.77 |
% |
|
12.40 |
% |
|
11.47 |
% |
|
12.40 |
% |
|
|
Total capital to risk-weighted assets |
|
12.92 |
% |
|
13.03 |
% |
|
13.11 |
% |
|
14.16 |
% |
|
13.77 |
% |
|
12.92 |
% |
|
13.77 |
% |
|
|
Tier 1 capital to average assets (leverage ratio) |
|
8.09 |
% |
|
8.21 |
% |
|
7.93 |
% |
|
8.66 |
% |
|
9.07 |
% |
|
8.09 |
% |
|
9.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
(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 2022 and actual for the remaining periods. In accordance with regulatory capital rules, Customers elected to apply the CECL capital transition provisions which delayed the effects of CECL on regulatory capital for two years until January 1, 2022, followed by a three-year transition period. The cumulative CECL capital transition impact as of December 31, 2021 which amounted to $61.6 million will be phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of June 30, 2022, our regulatory capital ratios reflected 75%, or $46.2 million, benefit associated with the CECL transition provisions. |
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED |
|||||||||||||||||||||||||||
|
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
||||||||||||||||
|
|
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
June 30, |
||||||||||||||||
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Loans and leases |
$ |
168,941 |
|
|
$ |
157,175 |
|
|
$ |
198,000 |
|
|
$ |
233,097 |
|
|
$ |
153,608 |
|
|
$ |
326,116 |
|
|
$ |
305,725 |
|
|
Investment securities |
|
25,442 |
|
|
|
20,295 |
|
|
|
15,202 |
|
|
|
8,905 |
|
|
|
8,327 |
|
|
|
45,737 |
|
|
|
16,306 |
|
|
Other |
|
1,951 |
|
|
|
6,006 |
|
|
|
835 |
|
|
|
849 |
|
|
|
946 |
|
|
|
7,957 |
|
|
|
1,965 |
|
|
Total interest income |
|
196,334 |
|
|
|
183,476 |
|
|
|
214,037 |
|
|
|
242,851 |
|
|
|
162,881 |
|
|
|
379,810 |
|
|
|
323,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Deposits |
|
22,781 |
|
|
|
13,712 |
|
|
|
15,415 |
|
|
|
15,915 |
|
|
|
15,653 |
|
|
|
36,493 |
|
|
|
31,311 |
|
|
FHLB advances |
|
2,316 |
|
|
|
— |
|
|
|
51 |
|
|
|
5 |
|
|
|
963 |
|
|
|
2,316 |
|
|
|
6,155 |
|
|
Subordinated debt |
|
2,689 |
|
|
|
2,689 |
|
|
|
2,688 |
|
|
|
2,689 |
|
|
|
2,689 |
|
|
|
5,378 |
|
|
|
5,378 |
|
|
FRB PPP liquidity facility, federal funds purchased and other borrowings |
|
3,696 |
|
|
|
2,376 |
|
|
|
2,189 |
|
|
|
4,350 |
|
|
|
4,819 |
|
|
|
6,072 |
|
|
|
9,664 |
|
|
Total interest expense |
|
31,482 |
|
|
|
18,777 |
|
|
|
20,343 |
|
|
|
22,959 |
|
|
|
24,124 |
|
|
|
50,259 |
|
|
|
52,508 |
|
|
Net interest income |
|
164,852 |
|
|
|
164,699 |
|
|
|
193,694 |
|
|
|
219,892 |
|
|
|
138,757 |
|
|
|
329,551 |
|
|
|
271,488 |
|
|
Provision for credit losses |
|
23,847 |
|
|
|
15,997 |
|
|
|
13,890 |
|
|
|
13,164 |
|
|
|
3,291 |
|
|
|
39,844 |
|
|
|
372 |
|
|
Net interest income after provision for credit losses |
|
141,005 |
|
|
|
148,702 |
|
|
|
179,804 |
|
|
|
206,728 |
|
|
|
135,466 |
|
|
|
289,707 |
|
|
|
271,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Interchange and card revenue |
|
24 |
|
|
|
76 |
|
|
|
84 |
|
|
|
83 |
|
|
|
84 |
|
|
|
100 |
|
|
|
169 |
|
|
Deposit fees |
|
964 |
|
|
|
940 |
|
|
|
1,026 |
|
|
|
994 |
|
|
|
891 |
|
|
|
1,904 |
|
|
|
1,754 |
|
|
Commercial lease income |
|
6,592 |
|
|
|
5,895 |
|
|
|
5,378 |
|
|
|
5,213 |
|
|
|
5,311 |
|
|
|
12,487 |
|
|
|
10,516 |
|
|
Bank-owned life insurance |
|
1,947 |
|
|
|
8,326 |
|
|
|
1,984 |
|
|
|
1,988 |
|
|
|
2,765 |
|
|
|
10,273 |
|
|
|
4,444 |
|
|
Mortgage warehouse transactional fees |
|
1,883 |
|
|
|
2,015 |
|
|
|
2,262 |
|
|
|
3,100 |
|
|
|
3,265 |
|
|
|
3,898 |
|
|
|
7,512 |
|
|
Gain (loss) on sale of SBA and other loans |
|
1,542 |
|
|
|
1,507 |
|
|
|
2,493 |
|
|
|
5,359 |
|
|
|
1,900 |
|
|
|
3,049 |
|
|
|
3,475 |
|
|
Loan fees |
|
2,618 |
|
|
|
2,545 |
|
|
|
2,513 |
|
|
|
1,909 |
|
|
|
1,670 |
|
|
|
5,163 |
|
|
|
3,106 |
|
|
Mortgage banking income (loss) |
|
173 |
|
|
|
481 |
|
|
|
262 |
|
|
|
425 |
|
|
|
386 |
|
|
|
654 |
|
|
|
849 |
|
|
Gain (loss) on sale of investment securities |
|
(3,029 |
) |
|
|
(1,063 |
) |
|
|
(49 |
) |
|
|
6,063 |
|
|
|
1,812 |
|
|
|
(4,092 |
) |
|
|
25,378 |
|
|
Unrealized gain (loss) on investment securities |
|
(203 |
) |
|
|
(276 |
) |
|
|
— |
|
|
|
— |
|
|
|
1,746 |
|
|
|
(479 |
) |
|
|
2,720 |
|
|
Loss on sale of foreign subsidiaries |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,840 |
) |
|
|
— |
|
|
|
(2,840 |
) |
|
Unrealized gain (loss) on derivatives |
|
821 |
|
|
|
964 |
|
|
|
586 |
|
|
|
524 |
|
|
|
(439 |
) |
|
|
1,785 |
|
|
|
2,098 |
|
|
Loss on cash flow hedge derivative terminations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(24,467 |
) |
|
Other |
|
(586 |
) |
|
|
(212 |
) |
|
|
452 |
|
|
|
(72 |
) |
|
|
271 |
|
|
|
(798 |
) |
|
|
576 |
|
|
Total non-interest income |
|
12,746 |
|
|
|
21,198 |
|
|
|
16,991 |
|
|
|
25,586 |
|
|
|
16,822 |
|
|
|
33,944 |
|
|
|
35,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Salaries and employee benefits |
|
25,334 |
|
|
|
26,607 |
|
|
|
29,940 |
|
|
|
26,268 |
|
|
|
28,023 |
|
|
|
51,941 |
|
|
|
51,994 |
|
|
Technology, communication and bank operations |
|
22,738 |
|
|
|
24,068 |
|
|
|
22,657 |
|
|
|
21,281 |
|
|
|
19,618 |
|
|
|
46,806 |
|
|
|
39,606 |
|
|
Professional services |
|
7,415 |
|
|
|
6,956 |
|
|
|
7,058 |
|
|
|
6,871 |
|
|
|
6,882 |
|
|
|
14,371 |
|
|
|
12,759 |
|
|
Occupancy |
|
4,279 |
|
|
|
3,050 |
|
|
|
4,336 |
|
|
|
2,704 |
|
|
|
2,482 |
|
|
|
7,329 |
|
|
|
5,103 |
|
|
Commercial lease depreciation |
|
5,552 |
|
|
|
4,942 |
|
|
|
4,625 |
|
|
|
4,493 |
|
|
|
4,415 |
|
|
|
10,494 |
|
|
|
8,706 |
|
|
FDIC assessments, non-income taxes and regulatory fees |
|
1,619 |
|
|
|
2,383 |
|
|
|
2,427 |
|
|
|
2,313 |
|
|
|
2,602 |
|
|
|
4,002 |
|
|
|
5,321 |
|
|
Loan servicing |
|
4,341 |
|
|
|
2,371 |
|
|
|
4,361 |
|
|
|
4,265 |
|
|
|
1,700 |
|
|
|
6,712 |
|
|
|
2,137 |
|
|
Merger and acquisition related expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
418 |
|
|
Loan workout |
|
179 |
|
|
|
(38 |
) |
|
|
226 |
|
|
|
198 |
|
|
|
102 |
|
|
|
141 |
|
|
|
(159 |
) |
|
Advertising and promotion |
|
353 |
|
|
|
315 |
|
|
|
344 |
|
|
|
302 |
|
|
|
313 |
|
|
|
668 |
|
|
|
874 |
|
|
Deposit relationship adjustment fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,216 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Other |
|
4,395 |
|
|
|
3,153 |
|
|
|
5,574 |
|
|
|
5,098 |
|
|
|
4,686 |
|
|
|
7,548 |
|
|
|
5,991 |
|
|
Total non-interest expense |
|
76,205 |
|
|
|
73,807 |
|
|
|
81,548 |
|
|
|
80,009 |
|
|
|
70,823 |
|
|
|
150,012 |
|
|
|
132,750 |
|
|
Income before income tax expense |
|
77,546 |
|
|
|
96,093 |
|
|
|
115,247 |
|
|
|
152,305 |
|
|
|
81,465 |
|
|
|
173,639 |
|
|
|
173,656 |
|
|
Income tax expense |
|
18,896 |
|
|
|
19,332 |
|
|
|
12,993 |
|
|
|
36,263 |
|
|
|
20,124 |
|
|
|
38,228 |
|
|
|
37,684 |
|
|
Net income from continuing operations |
$ |
58,650 |
|
|
$ |
76,761 |
|
|
$ |
102,254 |
|
|
$ |
116,042 |
|
|
$ |
61,341 |
|
|
$ |
135,411 |
|
|
$ |
135,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
(continued) |
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED (CONTINUED) |
|||||||||||||||||||||||||||
|
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
||||||||||||||||
|
|
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
June 30, |
||||||||||||||||
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Loss from discontinued operations before income taxes |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(20,354 |
) |
|
Income tax expense (benefit) from discontinued operations |
|
— |
|
|
|
— |
|
|
|
1,585 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,682 |
|
|
Net loss from discontinued operations |
|
— |
|
|
|
— |
|
|
|
(1,585 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(38,036 |
) |
|
Net income |
|
58,650 |
|
|
|
76,761 |
|
|
|
100,669 |
|
|
|
116,042 |
|
|
|
61,341 |
|
|
|
135,411 |
|
|
|
97,936 |
|
|
Preferred stock dividends |
|
2,131 |
|
|
|
1,865 |
|
|
|
2,022 |
|
|
|
2,981 |
|
|
|
3,299 |
|
|
|
3,996 |
|
|
|
6,690 |
|
|
Loss on redemption of preferred stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,820 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Net income available to common shareholders |
$ |
56,519 |
|
|
$ |
74,896 |
|
|
$ |
98,647 |
|
|
$ |
110,241 |
|
|
$ |
58,042 |
|
|
$ |
131,415 |
|
|
$ |
91,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Basic earnings per common share from continuing operations |
$ |
1.73 |
|
|
$ |
2.27 |
|
|
$ |
3.07 |
|
|
$ |
3.40 |
|
|
$ |
1.80 |
|
|
$ |
4.00 |
|
|
$ |
4.03 |
|
|
Basic earnings per common share |
|
1.73 |
|
|
|
2.27 |
|
|
|
3.02 |
|
|
|
3.40 |
|
|
|
1.80 |
|
|
|
4.00 |
|
|
|
2.84 |
|
|
Diluted earnings per common share from continuing operations |
|
1.68 |
|
|
|
2.18 |
|
|
|
2.92 |
|
|
|
3.25 |
|
|
|
1.72 |
|
|
|
3.87 |
|
|
|
3.88 |
|
|
Diluted earnings per common share |
|
1.68 |
|
|
|
2.18 |
|
|
|
2.87 |
|
|
|
3.25 |
|
|
|
1.72 |
|
|
|
3.87 |
|
|
|
2.74 |
|
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|||||||||||||||||||
|
CONSOLIDATED BALANCE SHEET - UNAUDITED |
|||||||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||||
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
||||||||||
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and due from banks |
$ |
66,703 |
|
|
$ |
55,515 |
|
|
$ |
35,238 |
|
|
$ |
51,169 |
|
|
$ |
36,837 |
|
|
Interest earning deposits |
|
178,475 |
|
|
|
219,085 |
|
|
|
482,794 |
|
|
|
1,000,885 |
|
|
|
393,663 |
|
|
Cash and cash equivalents |
|
245,178 |
|
|
|
274,600 |
|
|
|
518,032 |
|
|
|
1,052,054 |
|
|
|
430,500 |
|
|
Investment securities, at fair value |
|
3,144,882 |
|
|
|
4,169,853 |
|
|
|
3,817,150 |
|
|
|
1,866,697 |
|
|
|
1,526,792 |
|
|
Investment securities held to maturity |
|
495,039 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loans held for sale |
|
6,595 |
|
|
|
3,003 |
|
|
|
16,254 |
|
|
|
29,957 |
|
|
|
34,540 |
|
|
Loans receivable, mortgage warehouse, at fair value |
|
1,874,603 |
|
|
|
1,755,758 |
|
|
|
2,284,325 |
|
|
|
2,557,624 |
|
|
|
2,855,284 |
|
|
Loans receivable, PPP |
|
1,570,160 |
|
|
|
2,195,902 |
|
|
|
3,250,008 |
|
|
|
4,957,357 |
|
|
|
6,305,056 |
|
|
Loans and leases receivable |
|
12,212,995 |
|
|
|
10,118,855 |
|
|
|
9,018,298 |
|
|
|
7,970,599 |
|
|
|
7,772,142 |
|
|
Allowance for credit losses on loans and leases |
|
(156,530 |
) |
|
|
(145,847 |
) |
|
|
(137,804 |
) |
|
|
(131,496 |
) |
|
|
(125,436 |
) |
|
Total loans and leases receivable, net of allowance for credit losses on loans and leases |
|
15,501,228 |
|
|
|
13,924,668 |
|
|
|
14,414,827 |
|
|
|
15,354,084 |
|
|
|
16,807,046 |
|
|
FHLB, Federal Reserve Bank, and other restricted stock |
|
74,626 |
|
|
|
54,553 |
|
|
|
64,584 |
|
|
|
57,184 |
|
|
|
39,895 |
|
|
Accrued interest receivable |
|
98,727 |
|
|
|
94,669 |
|
|
|
92,239 |
|
|
|
93,514 |
|
|
|
90,009 |
|
|
Bank premises and equipment, net |
|
6,755 |
|
|
|
8,233 |
|
|
|
8,890 |
|
|
|
9,944 |
|
|
|
10,391 |
|
|
Bank-owned life insurance |
|
335,153 |
|
|
|
332,239 |
|
|
|
333,705 |
|
|
|
331,423 |
|
|
|
329,421 |
|
|
Goodwill and other intangibles |
|
3,629 |
|
|
|
3,678 |
|
|
|
3,736 |
|
|
|
3,794 |
|
|
|
3,853 |
|
|
Other assets |
|
340,184 |
|
|
|
298,212 |
|
|
|
305,611 |
|
|
|
310,271 |
|
|
|
362,661 |
|
|
Total assets |
$ |
20,251,996 |
|
|
$ |
19,163,708 |
|
|
$ |
19,575,028 |
|
|
$ |
19,108,922 |
|
|
$ |
19,635,108 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
|
Demand, non-interest bearing deposits |
$ |
4,683,030 |
|
|
$ |
4,594,428 |
|
|
$ |
4,459,790 |
|
|
$ |
4,954,331 |
|
|
$ |
2,699,869 |
|
|
Interest bearing deposits |
|
12,261,689 |
|
|
|
11,821,132 |
|
|
|
12,318,134 |
|
|
|
12,016,694 |
|
|
|
11,174,070 |
|
|
Total deposits |
|
16,944,719 |
|
|
|
16,415,560 |
|
|
|
16,777,924 |
|
|
|
16,971,025 |
|
|
|
13,873,939 |
|
|
Federal funds purchased |
|
770,000 |
|
|
|
700,000 |
|
|
|
75,000 |
|
|
|
— |
|
|
|
— |
|
|
FHLB advances |
|
635,000 |
|
|
|
— |
|
|
|
700,000 |
|
|
|
— |
|
|
|
— |
|
|
Other borrowings |
|
123,450 |
|
|
|
223,230 |
|
|
|
223,086 |
|
|
|
223,151 |
|
|
|
124,240 |
|
|
Subordinated debt |
|
181,812 |
|
|
|
181,742 |
|
|
|
181,673 |
|
|
|
181,603 |
|
|
|
181,534 |
|
|
FRB PPP liquidity facility |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,865,865 |
|
|
Accrued interest payable and other liabilities |
|
243,625 |
|
|
|
265,770 |
|
|
|
251,128 |
|
|
|
448,844 |
|
|
|
338,801 |
|
|
Total liabilities |
|
18,898,606 |
|
|
|
17,786,302 |
|
|
|
18,208,811 |
|
|
|
17,824,623 |
|
|
|
18,384,379 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Preferred stock |
|
137,794 |
|
|
|
137,794 |
|
|
|
137,794 |
|
|
|
137,794 |
|
|
|
217,471 |
|
|
Common stock |
|
34,922 |
|
|
|
34,882 |
|
|
|
34,722 |
|
|
|
33,818 |
|
|
|
33,634 |
|
|
Additional paid in capital |
|
545,670 |
|
|
|
542,402 |
|
|
|
542,391 |
|
|
|
525,894 |
|
|
|
519,294 |
|
|
Retained earnings |
|
837,147 |
|
|
|
780,628 |
|
|
|
705,732 |
|
|
|
607,085 |
|
|
|
496,844 |
|
|
Accumulated other comprehensive income (loss), net |
|
(124,881 |
) |
|
|
(62,548 |
) |
|
|
(4,980 |
) |
|
|
1,488 |
|
|
|
5,266 |
|
|
Treasury stock, at cost |
|
(77,262 |
) |
|
|
(55,752 |
) |
|
|
(49,442 |
) |
|
|
(21,780 |
) |
|
|
(21,780 |
) |
|
Total shareholders' equity |
|
1,353,390 |
|
|
|
1,377,406 |
|
|
|
1,366,217 |
|
|
|
1,284,299 |
|
|
|
1,250,729 |
|
|
Total liabilities and shareholders' equity |
$ |
20,251,996 |
|
|
$ |
19,163,708 |
|
|
$ |
19,575,028 |
|
|
$ |
19,108,922 |
|
|
$ |
19,635,108 |
|
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|||||||||||
|
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED |
|||||||||||
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|||
|
|
Three Months Ended |
||||||||||
|
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
||||||
|
|
Average
|
Average
|
|
Average
|
Average
|
|
Average
|
Average
|
|||
|
Assets |
|
|
|
|
|
|
|
|
|||
|
Interest earning deposits |
$ |
434,950 |
0.85% |
|
$ |
826,240 |
0.16% |
|
$ |
646,342 |
0.12% |
|
Investment securities (1) |
|
4,104,463 |
2.48% |
|
|
4,036,966 |
2.01% |
|
|
1,512,644 |
2.20% |
|
Loans and leases: |
|
|
|
|
|
|
|
|
|||
|
Commercial loans to mortgage companies |
|
1,898,554 |
3.30% |
|
|
1,836,647 |
3.09% |
|
|
2,737,629 |
3.09% |
|
Multi-family loans |
|
1,845,527 |
3.76% |
|
|
1,531,846 |
3.64% |
|
|
1,551,370 |
3.88% |
|
Commercial & industrial loans and leases (2) |
|
5,577,830 |
3.87% |
|
|
4,124,408 |
3.60% |
|
|
2,878,045 |
3.59% |
|
Loans receivable, PPP |
|
1,863,429 |
4.43% |
|
|
2,641,318 |
5.66% |
|
|
6,133,184 |
2.69% |
|
Non-owner occupied commercial real estate loans |
|
1,307,995 |
3.91% |
|
|
1,312,210 |
3.77% |
|
|
1,368,695 |
3.86% |
|
Residential mortgages |
|
515,612 |
3.81% |
|
|
416,417 |
3.58% |
|
|
346,284 |
3.62% |
|
Installment loans |
|
1,909,551 |
9.23% |
|
|
1,794,145 |
9.03% |
|
|
1,467,595 |
9.37% |
|
Total loans and leases (3) |
|
14,918,498 |
4.54% |
|
|
13,656,991 |
4.67% |
|
|
16,482,802 |
3.74% |
|
Other interest-earning assets |
|
68,025 |
6.09% |
|
|
52,111 |
NM(7) |
|
|
57,208 |
5.32% |
|
Total interest-earning assets |
|
19,525,936 |
4.03% |
|
|
18,572,308 |
4.00% |
|
|
18,698,996 |
3.49% |
|
Non-interest-earning assets |
|
530,084 |
|
|
|
557,022 |
|
|
|
607,952 |
|
|
Total assets |
$ |
20,056,020 |
|
|
$ |
19,129,330 |
|
|
$ |
19,306,948 |
|
|
Liabilities |
|
|
|
|
|
|
|
|
|||
|
Interest checking accounts |
|
6,409,617 |
0.85% |
|
|
5,769,372 |
0.54% |
|
|
3,503,242 |
0.76% |
|
Money market deposit accounts |
|
4,704,767 |
0.64% |
|
|
4,880,051 |
0.39% |
|
|
4,859,614 |
0.47% |
|
Other savings accounts |
|
695,176 |
0.44% |
|
|
880,113 |
0.36% |
|
|
1,456,777 |
0.57% |
|
Certificates of deposit |
|
530,180 |
0.65% |
|
|
450,644 |
0.47% |
|
|
658,698 |
0.78% |
|
Total interest-bearing deposits (4) |
|
12,339,740 |
0.74% |
|
|
11,980,180 |
0.46% |
|
|
10,478,331 |
0.60% |
|
Federal funds purchased |
|
642,747 |
0.89% |
|
|
88,611 |
0.33% |
|
|
71,703 |
0.07% |
|
FRB PPP liquidity facility |
|
— |
—% |
|
|
— |
—% |
|
|
3,858,733 |
0.35% |
|
Borrowings |
|
940,068 |
3.10% |
|
|
532,610 |
3.80% |
|
|
460,054 |
4.44% |
|
Total interest-bearing liabilities |
|
13,922,555 |
0.91% |
|
|
12,601,401 |
0.60% |
|
|
14,868,821 |
0.65% |
|
Non-interest-bearing deposits (4) |
|
4,491,574 |
|
|
|
4,900,983 |
|
|
|
2,889,781 |
|
|
Total deposits and borrowings |
|
18,414,129 |
0.69% |
|
|
17,502,384 |
0.43% |
|
|
17,758,602 |
0.54% |
|
Other non-interest-bearing liabilities |
|
259,279 |
|
|
|
237,131 |
|
|
|
328,251 |
|
|
Total liabilities |
|
18,673,408 |
|
|
|
17,739,515 |
|
|
|
18,086,853 |
|
|
Shareholders' equity |
|
1,382,612 |
|
|
|
1,389,815 |
|
|
|
1,220,095 |
|
|
Total liabilities and shareholders' equity |
$ |
20,056,020 |
|
|
$ |
19,129,330 |
|
|
$ |
19,306,948 |
|
|
Interest spread |
|
3.35% |
|
|
3.57% |
|
|
2.95% |
|||
|
Net interest margin |
|
3.38% |
|
|
3.59% |
|
|
2.98% |
|||
|
Net interest margin tax equivalent (5) |
|
3.39% |
|
|
3.60% |
|
|
2.98% |
|||
|
Net interest margin tax equivalent excl. PPP (6) |
|
3.32% |
|
|
3.32% |
|
|
3.30% |
|||
|
(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 0.54%, 0.33% and 0.47% for the three months ended June 30, 2022, March 31, 2022 and June 30, 2021, respectively. |
|
(5) Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended June 30, 2022, March 31, 2022 and June 30, 2021, presented to approximate interest income as a taxable asset. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities. |
|
(6) Non-GAAP tax-equivalent basis, as described in note (5) for the three months ended June 30, 2022, March 31, 2022 and June 30, 2021, excluding net interest income from PPP loans and related borrowings, along with the related PPP loan balances and PPP fees receivable from interest-earning assets. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities. |
|
(7) Not meaningful. |
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|||||||
|
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED |
|||||||
|
(Dollars in thousands) |
|
|
|
|
|
||
|
|
Six Months Ended |
||||||
|
|
June 30, 2022 |
|
June 30, 2021 |
||||
|
|
Average
|
Average
|
|
Average
|
Average
|
||
|
Assets |
|
|
|
|
|
||
|
Interest earning deposits |
$ |
629,514 |
0.40% |
|
$ |
910,362 |
0.11% |
|
Investment securities (1) |
|
4,070,901 |
2.25% |
|
|
1,435,529 |
2.27% |
|
Loans and leases: |
|
|
|
|
|
||
|
Commercial loans to mortgage companies |
|
1,867,772 |
3.20% |
|
|
2,928,802 |
3.09% |
|
Multi-family loans |
|
1,689,553 |
3.71% |
|
|
1,619,891 |
3.84% |
|
Commercial & industrial loans and leases (2) |
|
4,855,134 |
3.76% |
|
|
2,863,268 |
3.78% |
|
Loans receivable, PPP |
|
2,250,224 |
5.15% |
|
|
5,382,370 |
3.00% |
|
Non-owner occupied commercial real estate loans |
|
1,310,091 |
3.84% |
|
|
1,358,871 |
3.86% |
|
Residential mortgages |
|
466,288 |
3.71% |
|
|
359,815 |
3.71% |
|
Installment loans |
|
1,852,167 |
9.13% |
|
|
1,396,126 |
9.22% |
|
Total loans and leases (3) |
|
14,291,229 |
4.60% |
|
|
15,909,143 |
3.88% |
|
Other interest-earning assets |
|
60,113 |
NM (7) |
|
|
68,521 |
4.34% |
|
Total interest-earning assets |
|
19,051,757 |
4.02% |
|
|
18,323,555 |
3.56% |
|
Non-interest-earning assets |
|
543,479 |
|
|
|
594,936 |
|
|
Total assets |
$ |
19,595,236 |
|
|
$ |
18,918,491 |
|
|
Liabilities |
|
|
|
|
|
||
|
Interest checking accounts |
$ |
6,091,263 |
0.71% |
|
$ |
3,099,725 |
0.80% |
|
Money market deposit accounts |
|
4,791,925 |
0.51% |
|
|
4,648,942 |
0.51% |
|
Other savings accounts |
|
787,134 |
0.39% |
|
|
1,435,681 |
0.63% |
|
Certificates of deposit |
|
490,632 |
0.57% |
|
|
662,447 |
0.87% |
|
Total interest-bearing deposits (4) |
|
12,160,954 |
0.61% |
|
|
9,846,795 |
0.64% |
|
Federal funds purchased |
|
367,210 |
0.82% |
|
|
44,171 |
0.07% |
|
FRB PPP liquidity facility |
|
— |
—% |
|
|
3,899,996 |
0.35% |
|
Borrowings |
|
737,464 |
3.35% |
|
|
805,853 |
3.61% |
|
Total interest-bearing liabilities |
|
13,265,628 |
0.76% |
|
|
14,596,815 |
0.72% |
|
Non-interest-bearing deposits (4) |
|
4,695,148 |
|
|
|
2,855,019 |
|
|
Total deposits and borrowings |
|
17,960,776 |
0.56% |
|
|
17,451,834 |
0.61% |
|
Other non-interest-bearing liabilities |
|
248,266 |
|
|
|
288,246 |
|
|
Total liabilities |
|
18,209,042 |
|
|
|
17,740,080 |
|
|
Shareholders' equity |
|
1,386,194 |
|
|
|
1,178,411 |
|
|
Total liabilities and shareholders' equity |
$ |
19,595,236 |
|
|
$ |
18,918,491 |
|
|
Interest spread |
|
3.45% |
|
|
2.96% |
||
|
Net interest margin |
|
3.48% |
|
|
2.99% |
||
|
Net interest margin tax equivalent (5) |
|
3.49% |
|
|
2.99% |
||
|
Net interest margin tax equivalent excl. PPP (6) |
|
3.32% |
|
|
3.14% |
||
|
(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 0.44% and 0.50% for the six months ended June 30, 2022 and 2021, respectively. |
|
(5) Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of 26% for the six months ended June 30, 2022 and 2021, presented to approximate interest income as a taxable asset. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities. |
|
(6) Non-GAAP tax-equivalent basis as described in note (5), for the six months ended June 30, 2022 and 2021, excluding net interest income from PPP loans and related borrowings, along with the related PPP loan balances and PPP fees receivable from interest-earning assets. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities. |
|
(7) Not meaningful. |
|
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, |
|||||
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|||||
|
Commercial & industrial, including specialty lending |
$ |
5,637,083 |
|
$ |
3,921,439 |
|
$ |
3,346,670 |
|
$ |
2,604,367 |
|
$ |
2,293,723 |
|
Multi-family |
|
2,012,920 |
|
|
1,705,027 |
|
|
1,486,308 |
|
|
1,387,166 |
|
|
1,497,485 |
|
Loans to mortgage companies |
|
1,975,189 |
|
|
1,830,121 |
|
|
2,362,438 |
|
|
2,626,483 |
|
|
2,922,217 |
|
Commercial real estate owner occupied |
|
710,577 |
|
|
701,893 |
|
|
654,922 |
|
|
656,044 |
|
|
653,649 |
|
Loans receivable, PPP |
|
1,570,160 |
|
|
2,195,902 |
|
|
3,250,008 |
|
|
4,957,357 |
|
|
6,305,056 |
|
Commercial real estate non-owner occupied |
|
1,152,869 |
|
|
1,140,311 |
|
|
1,121,238 |
|
|
1,144,643 |
|
|
1,206,646 |
|
Construction |
|
195,687 |
|
|
161,024 |
|
|
198,981 |
|
|
198,607 |
|
|
179,198 |
|
Total commercial loans and leases |
|
13,254,485 |
|
|
11,655,717 |
|
|
12,420,565 |
|
|
13,574,667 |
|
|
15,057,974 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|||||
|
Residential |
|
460,228 |
|
|
469,426 |
|
|
350,984 |
|
|
260,820 |
|
|
273,493 |
|
Manufactured housing |
|
48,570 |
|
|
50,669 |
|
|
52,861 |
|
|
55,635 |
|
|
57,904 |
|
Installment |
|
1,901,070 |
|
|
1,897,706 |
|
|
1,744,475 |
|
|
1,624,415 |
|
|
1,577,651 |
|
Total consumer loans |
|
2,409,868 |
|
|
2,417,801 |
|
|
2,148,320 |
|
|
1,940,870 |
|
|
1,909,048 |
|
Total loans and leases |
$ |
15,664,353 |
|
$ |
14,073,518 |
|
$ |
14,568,885 |
|
$ |
15,515,537 |
|
$ |
16,967,022 |
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||
|
PERIOD END DEPOSIT COMPOSITION - UNAUDITED |
||||||||||||||||
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|||||||
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|||||||
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Demand, non-interest bearing |
$ |
4,683,030 |
|
$ |
4,594,428 |
|
$ |
4,459,790 |
|
$ |
4,954,331 |
|
$ |
2,699,869 |
||
|
Demand, interest bearing |
|
6,644,398 |
|
|
5,591,468 |
|
|
6,488,406 |
|
|
5,023,081 |
|
|
4,206,355 |
||
|
Total demand deposits |
|
11,327,428 |
|
|
10,185,896 |
|
|
10,948,196 |
|
|
9,977,412 |
|
|
6,906,224 |
||
|
Savings |
|
640,062 |
|
|
802,395 |
|
|
973,317 |
|
|
1,310,343 |
|
|
1,431,756 |
||
|
Money market |
|
4,254,205 |
|
|
4,981,077 |
|
|
4,349,073 |
|
|
5,090,121 |
|
|
4,908,809 |
||
|
Time deposits |
|
723,024 |
|
|
446,192 |
|
|
507,338 |
|
|
593,149 |
|
|
627,150 |
||
|
Total deposits |
$ |
16,944,719 |
|
$ |
16,415,560 |
|
$ |
16,777,924 |
|
$ |
16,971,025 |
|
$ |
13,873,939 |
||
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||
|
ASSET QUALITY - UNAUDITED |
||||||||||||||||||||||||
|
(Dollars in thousands) |
As of June 30, 2022 |
As of March 31, 2022 |
As of June 30, 2021 |
|||||||||||||||||||||
|
|
Total loans |
Non
|
Allowance
|
Total NPLs
|
Total
|
Total loans |
Non
|
Allowance
|
Total NPLs
|
Total
|
Total loans |
Non
|
Allowance
|
Total NPLs
|
Total
|
|||||||||
|
|
||||||||||||||||||||||||
|
Loan type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Commercial & industrial, including specialty lending (1) |
$ |
5,737,670 |
$ |
4,061 |
$ |
11,081 |
0.07 % |
272.86 % |
$ |
3,995,802 |
$ |
5,490 |
$ |
10,765 |
0.14 % |
196.08 % |
$ |
2,360,656 |
$ |
6,717 |
$ |
8,127 |
0.28 % |
120.99 % |
|
Multi-family |
|
2,008,784 |
|
1,153 |
|
9,765 |
0.06 % |
846.92 % |
|
1,705,027 |
|
17,869 |
|
7,437 |
1.05 % |
41.62 % |
|
1,497,485 |
|
21,595 |
|
5,028 |
1.44 % |
23.28 % |
|
Commercial real estate owner occupied |
|
710,577 |
|
2,913 |
|
4,745 |
0.41 % |
162.89 % |
|
701,893 |
|
2,191 |
|
3,841 |
0.31 % |
175.31 % |
|
653,649 |
|
2,688 |
|
4,464 |
0.41 % |
166.07 % |
|
Commercial real estate non-owner occupied |
|
1,152,869 |
|
— |
|
8,880 |
— % |
— % |
|
1,140,311 |
|
1,302 |
|
5,955 |
0.11 % |
457.37 % |
|
1,206,646 |
|
— |
|
7,374 |
— % |
— % |
|
Construction |
|
195,687 |
|
— |
|
1,179 |
— % |
— % |
|
161,024 |
|
— |
|
939 |
— % |
— % |
|
179,198 |
|
— |
|
2,643 |
— % |
— % |
|
Total commercial loans and leases receivable |
|
9,805,587 |
|
8,127 |
|
35,650 |
0.08 % |
438.66 % |
|
7,704,057 |
|
26,852 |
|
28,937 |
0.35 % |
107.76 % |
|
5,897,634 |
|
31,000 |
|
27,636 |
0.53 % |
89.15 % |
|
Residential |
|
457,768 |
|
6,258 |
|
5,578 |
1.37 % |
89.13 % |
|
466,423 |
|
8,124 |
|
4,685 |
1.74 % |
57.67 % |
|
266,911 |
|
8,991 |
|
2,299 |
3.37 % |
25.57 % |
|
Manufactured housing |
|
48,570 |
|
3,071 |
|
4,080 |
6.32 % |
132.86 % |
|
50,669 |
|
3,430 |
|
4,342 |
6.77 % |
126.59 % |
|
57,904 |
|
3,239 |
|
4,372 |
5.59 % |
134.98 % |
|
Installment |
|
1,901,070 |
|
5,965 |
|
111,222 |
0.31 % |
1864.58 % |
|
1,897,706 |
|
4,865 |
|
107,883 |
0.26 % |
2217.53 % |
|
1,549,693 |
|
2,728 |
|
91,129 |
0.18 % |
3340.51 % |
|
Total consumer loans receivable |
|
2,407,408 |
|
15,294 |
|
120,880 |
0.64 % |
790.38 % |
|
2,414,798 |
|
16,419 |
|
116,910 |
0.68 % |
712.04 % |
|
1,874,508 |
|
14,958 |
|
97,800 |
0.80 % |
653.83 % |
|
Loans and leases receivable (1) |
|
12,212,995 |
|
23,421 |
|
156,530 |
0.19 % |
668.33 % |
|
10,118,855 |
|
43,271 |
|
145,847 |
0.43 % |
337.05 % |
|
7,772,142 |
|
45,958 |
|
125,436 |
0.59 % |
272.94 % |
|
Loans receivable, PPP |
|
1,570,160 |
|
— |
|
— |
— % |
— % |
|
2,195,902 |
|
— |
|
— |
— % |
— % |
|
6,305,056 |
|
— |
|
— |
— % |
— % |
|
Loans receivable, mortgage warehouse, at fair value |
|
1,874,603 |
|
— |
|
— |
— % |
— % |
|
1,755,758 |
|
— |
|
— |
— % |
— % |
|
2,855,284 |
|
— |
|
— |
— % |
— % |
|
Total loans held for sale |
|
6,595 |
|
4,643 |
|
— |
70.40 % |
— % |
|
3,003 |
|
507 |
|
— |
16.88 % |
— % |
|
34,540 |
|
507 |
|
— |
1.47 % |
— % |
|
Total portfolio |
$ |
15,664,353 |
$ |
28,064 |
$ |
156,530 |
0.18 % |
557.76 % |
$ |
14,073,518 |
$ |
43,778 |
$ |
145,847 |
0.31 % |
333.15 % |
$ |
16,967,022 |
$ |
46,465 |
$ |
125,436 |
0.27 % |
269.96 % |
|
(1) |
Excluding loans receivable, PPP from total loans and leases receivable is a non-GAAP measure. Management believes the use of these non-GAAP measures provides additional clarity when assessing Customers' financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities. Please refer to the reconciliation schedules that follow this table. |
|
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
||||||||||||||||||||||
|
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED |
||||||||||||||||||||||
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
Six Months Ended
|
|||||||||||
|
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
|
Loan type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Multi-family |
$ |
1,990 |
|
$ |
(337) |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1,653 |
|
$ |
1,132 |
||
|
Commercial & industrial |
|
(416) |
|
|
(59) |
|
|
240 |
|
|
116 |
|
|
(283) |
|
|
(475) |
|
|
92 |
||
|
Commercial real estate owner occupied |
|
(42) |
|
|
(7) |
|
|
66 |
|
|
50 |
|
|
(1) |
|
|
(49) |
|
|
133 |
||
|
Commercial real estate non-owner occupied |
|
159 |
|
|
(8) |
|
|
(14) |
|
|
943 |
|
|
(59) |
|
|
151 |
|
|
(69) |
||
|
Construction |
|
(103) |
|
|
(113) |
|
|
(3) |
|
|
(3) |
|
|
(114) |
|
|
(216) |
|
|
(119) |
||
|
Residential |
|
(39) |
|
|
(2) |
|
|
(6) |
|
|
54 |
|
|
(12) |
|
|
(41) |
|
|
28 |
||
|
Installment |
|
11,932 |
|
|
7,752 |
|
|
7,299 |
|
|
5,944 |
|
|
7,060 |
|
|
19,684 |
|
|
17,915 |
||
|
Total net charge-offs (recoveries) from loans held for investment |
$ |
13,481 |
|
$ |
7,226 |
|
$ |
7,582 |
|
$ |
7,104 |
|
$ |
6,591 |
|
$ |
20,707 |
|
$ |
19,112 |
||
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
|
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED |
We believe that the non-GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our core results of operations and financial condition relative to other financial institutions. These non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. These non-GAAP financial measures exclude from corresponding GAAP measures the impact of certain elements that we do not believe are representative of our ongoing financial results, which we believe enhance an overall understanding of our performance and increases comparability of our period to period results. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. The non-GAAP measures presented are not necessarily comparable to non-GAAP measures that may be presented by other financial institutions. Although non-GAAP financial measures are frequently used in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results of operations or financial condition as reported under GAAP.
The following tables present reconciliations of GAAP to non-GAAP measures disclosed within this document.
|
Core Earnings - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
||||||||||||||||||
|
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|
2022 |
|
2021 |
||||||||||||||||||||||
|
(Dollars in thousands except per share data) |
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
||||||||||||||
|
GAAP net income to common shareholders |
$ |
56,519 |
$ |
1.68 |
|
$ |
74,896 |
$ |
2.18 |
|
$ |
98,647 |
$ |
2.87 |
|
$ |
110,241 |
$ |
3.25 |
|
$ |
58,042 |
$ |
1.72 |
|
$ |
131,415 |
$ |
3.87 |
|
$ |
91,246 |
$ |
2.74 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net loss from discontinued operations |
|
— |
|
— |
|
|
— |
|
— |
|
|
1,585 |
|
0.05 |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
38,036 |
|
1.14 |
|
Severance expense |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
1,517 |
|
0.04 |
|
|
— |
|
— |
|
|
1,517 |
|
0.05 |
|
Impairments on fixed assets and leases |
|
705 |
|
0.02 |
|
|
220 |
|
0.01 |
|
|
1,118 |
|
0.03 |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
925 |
|
0.03 |
|
|
— |
|
— |
|
Merger and acquisition related expenses |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
320 |
|
0.01 |
|
Legal reserves |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
897 |
|
0.03 |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
(Gains) losses on investment securities |
|
2,494 |
|
0.07 |
|
|
1,030 |
|
0.03 |
|
|
43 |
|
0.00 |
|
|
(4,591) |
|
(0.14) |
|
|
(2,694) |
|
(0.08) |
|
|
3,524 |
|
0.10 |
|
|
(21,467) |
|
(0.64) |
|
Loss on sale of foreign subsidiaries |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
2,150 |
|
0.06 |
|
|
— |
|
— |
|
|
2,150 |
|
0.06 |
|
Loss on cash flow hedge derivative terminations |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
18,716 |
|
0.56 |
|
Derivative credit valuation adjustment |
|
(351) |
|
(0.01) |
|
|
(736) |
|
(0.02) |
|
|
(180) |
|
(0.01) |
|
|
(198) |
|
(0.01) |
|
|
288 |
|
0.01 |
|
|
(1,087) |
|
(0.03) |
|
|
(907) |
|
(0.03) |
|
Deposit relationship adjustment fees |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
4,707 |
|
0.14 |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
Loss on redemption of preferred stock |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
2,820 |
|
0.08 |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
Core earnings |
$ |
59,367 |
$ |
1.77 |
|
$ |
75,410 |
$ |
2.20 |
|
$ |
101,213 |
$ |
2.95 |
|
$ |
113,876 |
$ |
3.36 |
|
$ |
59,303 |
$ |
1.76 |
|
$ |
134,777 |
$ |
3.97 |
|
$ |
129,611 |
$ |
3.89 |
|
Core Earnings, excluding PPP - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
||||||||||||||||||
|
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|
2022 |
|
2021 |
||||||||||||||||||||||
|
(Dollars in thousands except per share data) |
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
|
USD |
Per
|
||||||||||||||
|
GAAP net income to common shareholders |
$ |
56,519 |
$ |
1.68 |
|
$ |
74,896 |
$ |
2.18 |
|
$ |
98,647 |
$ |
2.87 |
|
$ |
110,241 |
$ |
3.25 |
|
$ |
58,042 |
$ |
1.72 |
|
$ |
131,415 |
$ |
3.87 |
|
$ |
91,246 |
$ |
2.74 |
|
Less: PPP net income (after tax) |
|
13,066 |
|
0.39 |
|
|
24,713 |
|
0.72 |
|
|
64,323 |
|
1.87 |
|
|
81,337 |
|
2.40 |
|
|
24,312 |
|
0.72 |
|
|
37,779 |
|
1.11 |
|
|
49,391 |
|
1.48 |
|
GAAP net income to common shareholders, excluding PPP |
|
43,453 |
|
1.29 |
|
|
50,183 |
|
1.46 |
|
|
34,324 |
|
1.00 |
|
|
28,904 |
|
0.85 |
|
|
33,730 |
|
1.00 |
|
|
93,636 |
|
2.76 |
|
|
41,855 |
|
1.26 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net loss from discontinued operations |
|
— |
|
— |
|
|
— |
|
— |
|
|
1,585 |
|
0.05 |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
38,036 |
|
1.14 |
|
Severance expense |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
1,517 |
|
0.04 |
|
|
— |
|
— |
|
|
1,517 |
|
0.05 |
|
Impairments on fixed assets and leases |
|
705 |
|
0.02 |
|
|
220 |
|
0.01 |
|
|
1,118 |
|
0.03 |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
925 |
|
0.03 |
|
|
— |
|
— |
|
Merger and acquisition related expenses |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
320 |
|
0.01 |
|
Legal reserves |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
897 |
|
0.03 |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
(Gains) losses on investment securities |
|
2,494 |
|
0.07 |
|
|
1,030 |
|
0.03 |
|
|
43 |
|
0.00 |
|
|
(4,591) |
|
(0.14) |
|
|
(2,694) |
|
(0.08) |
|
|
3,524 |
|
0.10 |
|
|
(21,467) |
|
(0.64) |
|
Loss on sale of foreign subsidiaries |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
2,150 |
|
0.06 |
|
|
— |
|
— |
|
|
2,150 |
|
0.06 |
|
Loss on cash flow hedge derivative terminations |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
18,716 |
|
0.56 |
|
Derivative credit valuation adjustment |
|
(351) |
|
(0.01) |
|
|
(736) |
|
(0.02) |
|
|
(180) |
|
(0.01) |
|
|
(198) |
|
(0.01) |
|
|
288 |
|
0.01 |
|
|
(1,087) |
|
(0.03) |
|
|
(907) |
|
(0.03) |
|
Deposit relationship adjustment fees |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
4,707 |
|
0.14 |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
Loss on redemption of preferred stock |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
2,820 |
|
0.08 |
|
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
— |
|
Core earnings, excluding PPP |
$ |
46,301 |
$ |
1.38 |
|
$ |
50,697 |
$ |
1.48 |
|
$ |
36,890 |
$ |
1.07 |
|
$ |
32,539 |
$ |
0.96 |
|
$ |
34,991 |
$ |
1.04 |
|
$ |
96,998 |
$ |
2.86 |
|
$ |
80,220 |
$ |
2.41 |
|
Core Return on Average Assets - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|||||||||
|
(Dollars in thousands except per share data) |
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|
|
2022 |
|
|
2021 |
|||||
|
GAAP net income |
$ |
58,650 |
|
$ |
76,761 |
|
$ |
100,669 |
|
$ |
116,042 |
|
$ |
61,341 |
|
$ |
135,411 |
|
$ |
97,936 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Net loss from discontinued operations |
|
— |
|
|
— |
|
|
1,585 |
|
|
— |
|
|
— |
|
|
— |
|
|
38,036 |
|
Severance expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,517 |
|
|
— |
|
|
1,517 |
|
Impairments on fixed assets and leases |
|
705 |
|
|
220 |
|
|
1,118 |
|
|
— |
|
|
— |
|
|
925 |
|
|
— |
|
Merger and acquisition related expenses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
320 |
|
Legal reserves |
|
— |
|
|
— |
|
|
— |
|
|
897 |
|
|
— |
|
|
— |
|
|
— |
|
(Gains) losses on investment securities |
|
2,494 |
|
|
1,030 |
|
|
43 |
|
|
(4,591) |
|
|
(2,694) |
|
|
3,524 |
|
|
(21,467) |
|
Loss on sale of foreign subsidiaries |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,150 |
|
|
— |
|
|
2,150 |
|
Loss on cash flow hedge derivative terminations |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
18,716 |
|
Derivative credit valuation adjustment |
|
(351) |
|
|
(736) |
|
|
(180) |
|
|
(198) |
|
|
288 |
|
|
(1,087) |
|
|
(907) |
|
Deposit relationship adjustment fees |
|
— |
|
|
— |
|
|
— |
|
|
4,707 |
|
|
— |
|
|
— |
|
|
— |
|
Core net income |
$ |
61,498 |
|
$ |
77,275 |
|
$ |
103,235 |
|
$ |
116,857 |
|
$ |
62,602 |
|
$ |
138,773 |
|
$ |
136,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Average total assets |
$ |
20,056,020 |
|
$ |
19,129,330 |
|
$ |
19,214,241 |
|
$ |
19,739,340 |
|
$ |
19,306,948 |
|
$ |
19,595,236 |
|
$ |
18,918,491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Core return on average assets |
|
1.23 % |
|
|
1.64 % |
|
|
2.13 % |
|
|
2.35 % |
|
|
1.30 % |
|
|
1.43 % |
|
|
1.45 % |
|
Adjusted Net Income and Adjusted ROAA - Pre-Tax Pre-Provision - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|||||||||
|
(Dollars in thousands except per share data) |
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|
|
2022 |
|
|
2021 |
|||||
|
GAAP net income |
$ |
58,650 |
|
$ |
76,761 |
|
$ |
100,669 |
|
$ |
116,042 |
|
$ |
61,341 |
|
$ |
135,411 |
|
$ |
97,936 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Income tax expense |
|
18,896 |
|
|
19,332 |
|
|
12,993 |
|
|
36,263 |
|
|
20,124 |
|
|
38,228 |
|
|
37,684 |
|
Provision (benefit) for credit losses |
|
23,847 |
|
|
15,997 |
|
|
13,890 |
|
|
13,164 |
|
|
3,291 |
|
|
39,844 |
|
|
372 |
|
Provision (benefit) for credit losses on unfunded commitments |
|
608 |
|
|
(109) |
|
|
352 |
|
|
669 |
|
|
45 |
|
|
499 |
|
|
(1,241) |
|
Severance expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,004 |
|
|
— |
|
|
2,004 |
|
Net loss from discontinued operations |
|
— |
|
|
— |
|
|
1,585 |
|
|
— |
|
|
— |
|
|
— |
|
|
38,036 |
|
Impairments on fixed assets and leases |
|
914 |
|
|
286 |
|
|
1,260 |
|
|
— |
|
|
— |
|
|
1,200 |
|
|
— |
|
Merger and acquisition related expenses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
418 |
|
Legal reserves |
|
— |
|
|
— |
|
|
— |
|
|
1,185 |
|
|
— |
|
|
— |
|
|
— |
|
(Gains) losses on investment securities |
|
3,232 |
|
|
1,339 |
|
|
49 |
|
|
(6,063) |
|
|
(3,558) |
|
|
4,571 |
|
|
(28,098) |
|
Loss on sale of foreign subsidiaries |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,840 |
|
|
— |
|
|
2,840 |
|
Loss on cash flow hedge derivative terminations |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
24,467 |
|
Derivative credit valuation adjustment |
|
(455) |
|
|
(957) |
|
|
(203) |
|
|
(261) |
|
|
380 |
|
|
(1,412) |
|
|
(1,182) |
|
Deposit relationship adjustment fees |
|
— |
|
|
— |
|
|
— |
|
|
6,216 |
|
|
— |
|
|
— |
|
|
— |
|
Adjusted net income - pre-tax pre-provision |
$ |
105,692 |
|
$ |
112,649 |
|
$ |
130,595 |
|
$ |
167,215 |
|
$ |
86,467 |
|
$ |
218,341 |
|
$ |
173,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Average total assets |
$ |
20,056,020 |
|
$ |
19,129,330 |
|
$ |
19,214,241 |
|
$ |
19,739,340 |
|
$ |
19,306,948 |
|
$ |
19,595,236 |
|
$ |
18,918,491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Adjusted ROAA - pre-tax pre-provision |
|
2.11 % |
|
|
2.39 % |
|
|
2.70 % |
|
|
3.36 % |
|
|
1.80 % |
|
|
2.25 % |
|
|
1.85 % |
|
Core Return on Average Common Equity - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|||||||||
|
(Dollars in thousands except per share data) |
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|
|
2022 |
|
|
2021 |
|||||
|
GAAP net income to common shareholders |
$ |
56,519 |
|
$ |
74,896 |
|
$ |
98,647 |
|
$ |
110,241 |
|
$ |
58,042 |
|
$ |
131,415 |
|
$ |
91,246 |
|
Reconciling items (after tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Net loss from discontinued operations |
|
— |
|
|
— |
|
|
1,585 |
|
|
— |
|
|
— |
|
|
— |
|
|
38,036 |
|
Severance expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,517 |
|
|
— |
|
|
1,517 |
|
Impairments on fixed assets and leases |
|
705 |
|
|
220 |
|
|
1,118 |
|
|
— |
|
|
— |
|
|
925 |
|
|
— |
|
Merger and acquisition related expenses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
320 |
|
Legal reserves |
|
— |
|
|
— |
|
|
— |
|
|
897 |
|
|
— |
|
|
— |
|
|
— |
|
(Gains) losses on investment securities |
|
2,494 |
|
|
1,030 |
|
|
43 |
|
|
(4,591) |
|
|
(2,694) |
|
|
3,524 |
|
|
(21,467) |
|
Loss on sale of foreign subsidiaries |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,150 |
|
|
— |
|
|
2,150 |
|
Loss on cash flow hedge derivative terminations |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
18,716 |
|
Derivative credit valuation adjustment |
|
(351) |
|
|
(736) |
|
|
(180) |
|
|
(198) |
|
|
288 |
|
|
(1,087) |
|
|
(907) |
|
Deposit relationship adjustment fees |
|
— |
|
|
— |
|
|
— |
|
|
4,707 |
|
|
— |
|
|
— |
|
|
— |
|
Loss on redemption of preferred stock |
|
— |
|
|
— |
|
|
— |
|
|
2,820 |
|
|
— |
|
|
— |
|
|
— |
|
Core earnings |
$ |
59,367 |
|
$ |
75,410 |
|
$ |
101,213 |
|
$ |
113,876 |
|
$ |
59,303 |
|
$ |
134,777 |
|
$ |
129,611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Average total common shareholders' equity |
$ |
1,244,819 |
|
$ |
1,252,022 |
|
$ |
1,179,478 |
|
$ |
1,071,566 |
|
$ |
1,002,624 |
|
$ |
1,248,400 |
|
$ |
960,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Core return on average common equity |
|
19.13 % |
|
|
24.43 % |
|
|
34.04 % |
|
|
42.16 % |
|
|
23.72 % |
|
|
21.77 % |
|
|
27.20 % |
|
Adjusted ROCE - Pre-Tax Pre-Provision - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|||||||||
|
(Dollars in thousands except per share data) |
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|
|
2022 |
|
|
2021 |
|||||
|
GAAP net income to common shareholders |
$ |
56,519 |
|
$ |
74,896 |
|
$ |
98,647 |
|
$ |
110,241 |
|
$ |
58,042 |
|
$ |
131,415 |
|
$ |
91,246 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Income tax expense |
|
18,896 |
|
|
19,332 |
|
|
12,993 |
|
|
36,263 |
|
|
20,124 |
|
|
38,228 |
|
|
37,684 |
|
Provision (benefit) for credit losses |
|
23,847 |
|
|
15,997 |
|
|
13,890 |
|
|
13,164 |
|
|
3,291 |
|
|
39,844 |
|
|
372 |
|
Provision (benefit) for credit losses on unfunded commitments |
|
608 |
|
|
(109) |
|
|
352 |
|
|
669 |
|
|
45 |
|
|
499 |
|
|
(1,241) |
|
Net loss from discontinued operations |
|
— |
|
|
— |
|
|
1,585 |
|
|
— |
|
|
— |
|
|
— |
|
|
38,036 |
|
Severance expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,004 |
|
|
— |
|
|
2,004 |
|
Impairments on fixed assets and leases |
|
914 |
|
|
286 |
|
|
1,260 |
|
|
— |
|
|
— |
|
|
1,200 |
|
|
— |
|
Merger and acquisition related expenses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
418 |
|
Legal reserves |
|
— |
|
|
— |
|
|
— |
|
|
1,185 |
|
|
— |
|
|
— |
|
|
— |
|
(Gains) losses on investment securities |
|
3,232 |
|
|
1,339 |
|
|
49 |
|
|
(6,063) |
|
|
(3,558) |
|
|
4,571 |
|
|
(28,098) |
|
Loss on sale of foreign subsidiaries |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,840 |
|
|
— |
|
|
2,840 |
|
Loss on cash flow hedge derivative terminations |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
24,467 |
|
Derivative credit valuation adjustment |
|
(455) |
|
|
(957) |
|
|
(203) |
|
|
(261) |
|
|
380 |
|
|
(1,412) |
|
|
(1,182) |
|
Deposit relationship adjustment fees |
|
— |
|
|
— |
|
|
— |
|
|
6,216 |
|
|
— |
|
|
— |
|
|
— |
|
Loss on redemption of preferred stock |
|
— |
|
|
— |
|
|
— |
|
|
2,820 |
|
|
— |
|
|
— |
|
|
— |
|
Pre-tax pre-provision adjusted net income available to common shareholders |
$ |
103,561 |
|
$ |
110,784 |
|
$ |
128,573 |
|
$ |
164,234 |
|
$ |
83,168 |
|
$ |
214,345 |
|
$ |
166,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Average total common shareholders' equity |
$ |
1,244,819 |
|
$ |
1,252,022 |
|
$ |
1,179,478 |
|
$ |
1,071,566 |
|
$ |
1,002,624 |
|
$ |
1,248,400 |
|
$ |
960,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Adjusted ROCE - pre-tax pre-provision |
|
33.37 % |
|
|
35.89 % |
|
|
43.25 % |
|
|
60.81 % |
|
|
33.27 % |
|
|
34.62 % |
|
|
34.95 % |
|
Net Interest Margin, Tax Equivalent - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|||||||||
|
(Dollars in thousands except per share data) |
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|
|
2022 |
|
|
2021 |
|||||
|
GAAP net interest income |
$ |
164,852 |
|
$ |
164,699 |
|
$ |
193,694 |
|
$ |
219,892 |
|
$ |
138,757 |
|
$ |
329,551 |
|
$ |
271,488 |
|
Tax-equivalent adjustment |
|
270 |
|
|
239 |
|
|
276 |
|
|
290 |
|
|
289 |
|
|
509 |
|
|
581 |
|
Net interest income tax equivalent |
$ |
165,122 |
|
$ |
164,938 |
|
$ |
193,970 |
|
$ |
220,182 |
|
$ |
139,046 |
|
$ |
330,060 |
|
$ |
272,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Average total interest earning assets |
$ |
19,525,936 |
|
$ |
18,572,308 |
|
$ |
18,576,433 |
|
$ |
19,033,826 |
|
$ |
18,698,996 |
|
$ |
19,051,757 |
|
$ |
18,323,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Net interest margin, tax equivalent |
|
3.39 % |
|
|
3.60 % |
|
|
4.14 % |
|
|
4.59 % |
|
|
2.98 % |
|
|
3.49 % |
|
|
2.99 % |
|
Net Interest Margin, Tax Equivalent, excluding PPP - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|||||||||
|
(Dollars in thousands except per share data) |
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|
|
2022 |
|
|
2021 |
|||||
|
GAAP net interest income |
$ |
164,852 |
|
$ |
164,699 |
|
$ |
193,694 |
|
$ |
219,892 |
|
$ |
138,757 |
|
$ |
329,551 |
|
$ |
271,488 |
|
PPP net interest income |
|
(18,946) |
|
|
(34,615) |
|
|
(78,647) |
|
|
(112,005) |
|
|
(35,785) |
|
|
(53,561) |
|
|
(70,627) |
|
Tax-equivalent adjustment |
|
270 |
|
|
239 |
|
|
276 |
|
|
290 |
|
|
289 |
|
|
509 |
|
|
581 |
|
Net interest income, tax equivalent, excluding PPP |
$ |
146,176 |
|
$ |
130,323 |
|
$ |
115,323 |
|
$ |
108,177 |
|
$ |
103,261 |
|
$ |
276,499 |
|
$ |
201,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
GAAP average total interest earning assets |
$ |
19,525,936 |
|
$ |
18,572,308 |
|
$ |
18,576,433 |
|
$ |
19,033,826 |
|
$ |
18,698,996 |
|
$ |
19,051,757 |
|
$ |
18,323,555 |
|
Average PPP loans |
|
(1,863,429) |
|
|
(2,641,318) |
|
|
(3,898,607) |
|
|
(5,778,367) |
|
|
(6,133,184) |
|
|
(2,250,224) |
|
|
(5,382,370) |
|
Adjusted average total interest earning assets |
$ |
17,662,507 |
|
$ |
15,930,990 |
|
$ |
14,677,826 |
|
$ |
13,255,459 |
|
$ |
12,565,812 |
|
$ |
16,801,533 |
|
$ |
12,941,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Net interest margin, tax equivalent, excluding PPP |
|
3.32 % |
|
|
3.32 % |
|
|
3.12 % |
|
|
3.24 % |
|
|
3.30 % |
|
|
3.32 % |
|
|
3.14 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Loan Yield, excluding PPP |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|||||||||
|
(Dollars in thousands except per share data) |
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|
|
2022 |
|
|
2021 |
|||||
|
Interest income on loans and leases |
$ |
168,941 |
|
$ |
157,175 |
|
$ |
198,000 |
|
$ |
233,097 |
|
$ |
153,608 |
|
$ |
326,116 |
|
$ |
305,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
PPP interest income |
|
(20,572) |
|
|
(36,894) |
|
|
(82,086) |
|
|
(117,102) |
|
|
(41,137) |
|
|
(57,466) |
|
|
(79,969) |
|
Interest income on core loans (Loans and leases, excluding PPP) |
$ |
148,369 |
|
$ |
120,281 |
|
$ |
115,914 |
|
$ |
115,995 |
|
$ |
112,471 |
|
$ |
268,650 |
|
$ |
225,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Average loans and leases |
|
14,918,498 |
|
|
13,656,991 |
|
|
14,335,370 |
|
|
16,192,744 |
|
|
16,482,802 |
|
|
14,291,229 |
|
|
15,909,143 |
|
Average PPP loans |
|
(1,863,429) |
|
|
(2,641,318) |
|
|
(3,898,607) |
|
|
(5,778,367) |
|
|
(6,133,184) |
|
|
(2,250,224) |
|
|
(5,382,370) |
|
Adjusted average total interest earning assets |
|
13,055,069 |
|
|
11,015,673 |
|
|
10,436,763 |
|
|
10,414,377 |
|
|
10,349,618 |
|
|
12,041,005 |
|
|
10,526,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Loan yield, excluding PPP |
|
4.56 % |
|
|
4.43 % |
|
|
4.41 % |
|
|
4.42 % |
|
|
4.36 % |
|
|
4.50 % |
|
|
4.32 % |
|
Core Efficiency Ratio - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|||||||||
|
(Dollars in thousands except per share data) |
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|
|
2022 |
|
|
2021 |
|||||
|
GAAP net interest income |
$ |
164,852 |
|
$ |
164,699 |
|
$ |
193,694 |
|
$ |
219,892 |
|
$ |
138,757 |
|
$ |
329,551 |
|
$ |
271,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
GAAP non-interest income |
$ |
12,746 |
|
$ |
21,198 |
|
$ |
16,991 |
|
$ |
25,586 |
|
$ |
16,822 |
|
$ |
33,944 |
|
$ |
35,290 |
|
(Gains) losses on investment securities |
|
3,232 |
|
|
1,339 |
|
|
49 |
|
|
(6,063) |
|
|
(3,558) |
|
|
4,571 |
|
|
(28,098) |
|
Derivative credit valuation adjustment |
|
(455) |
|
|
(957) |
|
|
(203) |
|
|
(261) |
|
|
380 |
|
|
(1,412) |
|
|
(1,182) |
|
Loss on cash flow hedge derivative terminations |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
24,467 |
|
Loss on sale of foreign subsidiaries |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,840 |
|
|
— |
|
|
2,840 |
|
Core non-interest income |
|
15,523 |
|
|
21,580 |
|
|
16,837 |
|
|
19,262 |
|
|
16,484 |
|
|
37,103 |
|
|
33,317 |
|
Core revenue |
$ |
180,375 |
|
$ |
186,279 |
|
$ |
210,531 |
|
$ |
239,154 |
|
$ |
155,241 |
|
$ |
366,654 |
|
$ |
304,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
GAAP non-interest expense |
$ |
76,205 |
|
$ |
73,807 |
|
$ |
81,548 |
|
$ |
80,009 |
|
$ |
70,823 |
|
$ |
150,012 |
|
$ |
132,750 |
|
Severance expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,004) |
|
|
— |
|
|
(2,004) |
|
Impairments on fixed assets and leases |
|
(914) |
|
|
(286) |
|
|
(1,260) |
|
|
— |
|
|
— |
|
|
(1,200) |
|
|
— |
|
Legal reserves |
|
— |
|
|
— |
|
|
— |
|
|
(1,185) |
|
|
— |
|
|
— |
|
|
— |
|
Merger and acquisition related expenses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(418) |
|
Deposit relationship adjustment fees |
|
— |
|
|
— |
|
|
— |
|
|
(6,216) |
|
|
— |
|
|
— |
|
|
— |
|
Core non-interest expense |
$ |
75,291 |
|
$ |
73,521 |
|
$ |
80,288 |
|
$ |
72,608 |
|
$ |
68,819 |
|
$ |
148,812 |
|
$ |
130,328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Core efficiency ratio (1) |
|
41.74 % |
|
|
39.47 % |
|
|
38.14 % |
|
|
30.36 % |
|
|
44.33 % |
|
|
40.59 % |
|
|
42.76 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(1) Core efficiency ratio calculated as core non-interest expense divided by core revenue.
|
Tangible Common Equity to Tangible Assets - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(Dollars in thousands except per share data) |
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|||||
|
GAAP total shareholders' equity |
$ |
1,353,390 |
|
$ |
1,377,406 |
|
$ |
1,366,217 |
|
$ |
1,284,299 |
|
$ |
1,250,729 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|||||
|
Preferred stock |
|
(137,794) |
|
|
(137,794) |
|
|
(137,794) |
|
|
(137,794) |
|
|
(217,471) |
|
Goodwill and other intangibles |
|
(3,629) |
|
|
(3,678) |
|
|
(3,736) |
|
|
(3,794) |
|
|
(3,853) |
|
Tangible common equity |
$ |
1,211,967 |
|
$ |
1,235,934 |
|
$ |
1,224,687 |
|
$ |
1,142,711 |
|
$ |
1,029,405 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
GAAP total assets |
$ |
20,251,996 |
|
$ |
19,163,708 |
|
$ |
19,575,028 |
|
$ |
19,108,922 |
|
$ |
19,635,108 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|||||
|
Goodwill and other intangibles |
|
(3,629) |
|
|
(3,678) |
|
|
(3,736) |
|
|
(3,794) |
|
|
(3,853) |
|
Tangible assets |
$ |
20,248,367 |
|
$ |
19,160,030 |
|
$ |
19,571,292 |
|
$ |
19,105,128 |
|
$ |
19,631,255 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Tangible common equity to tangible assets |
|
5.99 % |
|
|
6.45 % |
|
|
6.26 % |
|
|
5.98 % |
|
|
5.24 % |
|
Tangible Common Equity to Tangible Assets, excluding PPP - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(Dollars in thousands except per share data) |
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|||||
|
GAAP total shareholders' equity |
$ |
1,353,390 |
|
$ |
1,377,406 |
|
$ |
1,366,217 |
|
$ |
1,284,299 |
|
$ |
1,250,729 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|||||
|
Preferred stock |
|
(137,794) |
|
|
(137,794) |
|
|
(137,794) |
|
|
(137,794) |
|
|
(217,471) |
|
Goodwill and other intangibles |
|
(3,629) |
|
|
(3,678) |
|
|
(3,736) |
|
|
(3,794) |
|
|
(3,853) |
|
Tangible common equity |
$ |
1,211,967 |
|
$ |
1,235,934 |
|
$ |
1,224,687 |
|
$ |
1,142,711 |
|
$ |
1,029,405 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
GAAP total assets |
$ |
20,251,996 |
|
$ |
19,163,708 |
|
$ |
19,575,028 |
|
$ |
19,108,922 |
|
$ |
19,635,108 |
|
Loans receivable, PPP |
|
(1,570,160) |
|
|
(2,195,902) |
|
|
(3,250,008) |
|
|
(4,957,357) |
|
|
(6,305,056) |
|
Total assets, excluding PPP |
$ |
18,681,836 |
|
$ |
16,967,806 |
|
$ |
16,325,020 |
|
$ |
14,151,565 |
|
$ |
13,330,052 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|||||
|
Goodwill and other intangibles |
|
(3,629) |
|
|
(3,678) |
|
|
(3,736) |
|
|
(3,794) |
|
|
(3,853) |
|
Tangible assets, excluding PPP |
$ |
18,678,207 |
|
$ |
16,964,128 |
|
$ |
16,321,284 |
|
$ |
14,147,771 |
|
$ |
13,326,199 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Tangible common equity to tangible assets, excluding PPP |
|
6.49 % |
|
|
7.29 % |
|
|
7.50 % |
|
|
8.08 % |
|
|
7.72 % |
|
Tangible Book Value per Common Share - Customers Bancorp |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(Dollars in thousands except share and per share data) |
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|||||
|
GAAP total shareholders' equity |
$ |
1,353,390 |
|
$ |
1,377,406 |
|
$ |
1,366,217 |
|
$ |
1,284,299 |
|
$ |
1,250,729 |
|
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|||||
|
Preferred stock |
|
(137,794) |
|
|
(137,794) |
|
|
(137,794) |
|
|
(137,794) |
|
|
(217,471) |
|
Goodwill and other intangibles |
|
(3,629) |
|
|
(3,678) |
|
|
(3,736) |
|
|
(3,794) |
|
|
(3,853) |
|
Tangible common equity |
$ |
1,211,967 |
|
$ |
1,235,934 |
|
$ |
1,224,687 |
|
$ |
1,142,711 |
|
$ |
1,029,405 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Common shares outstanding |
|
32,449,486 |
|
|
32,957,847 |
|
|
32,913,267 |
|
|
32,537,976 |
|
|
32,353,256 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Tangible book value per common share |
$ |
37.35 |
|
$ |
37.50 |
|
$ |
37.21 |
|
$ |
35.12 |
|
$ |
31.82 |
|
Core Loans (Total Loans and Leases, excluding PPP) |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(Dollars in thousands except per share data) |
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|||||
|
Total loans and leases |
$ |
15,664,353 |
|
$ |
14,073,518 |
|
$ |
14,568,885 |
|
$ |
15,515,537 |
|
$ |
16,967,022 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Loans receivable, PPP |
|
(1,570,160) |
|
|
(2,195,902) |
|
|
(3,250,008) |
|
|
(4,957,357) |
|
|
(6,305,056) |
|
Core Loans (Loans and leases, excluding PPP) |
$ |
14,094,193 |
|
$ |
11,877,616 |
|
$ |
11,318,877 |
|
$ |
10,558,180 |
|
$ |
10,661,966 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total loans and leases, excluding mortgage banking lending and PPP |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(Dollars in thousands except per share data) |
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|||||
|
Total loans and leases |
$ |
15,664,353 |
|
$ |
14,073,518 |
|
$ |
14,568,885 |
|
$ |
15,515,537 |
|
$ |
16,967,022 |
|
Loans to mortgage companies |
|
(1,975,189) |
|
|
(1,830,121) |
|
|
(2,362,438) |
|
|
(2,626,483) |
|
|
(2,922,217) |
|
Loans receivable, PPP |
|
(1,570,160) |
|
|
(2,195,902) |
|
|
(3,250,008) |
|
|
(4,957,357) |
|
|
(6,305,056) |
|
Total loans and leases, excluding mortgage banking lending and PPP |
$ |
12,119,004 |
|
$ |
10,047,495 |
|
$ |
8,956,439 |
|
$ |
7,931,697 |
|
$ |
7,739,749 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total Assets, excluding PPP |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(Dollars in thousands except per share data) |
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|||||
|
Total assets |
$ |
20,251,996 |
|
$ |
19,163,708 |
|
$ |
19,575,028 |
|
$ |
19,108,922 |
|
$ |
19,635,108 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Loans receivable, PPP |
|
(1,570,160) |
|
|
(2,195,902) |
|
|
(3,250,008) |
|
|
(4,957,357) |
|
|
(6,305,056) |
|
Total assets, excluding PPP |
$ |
18,681,836 |
|
$ |
16,967,806 |
|
$ |
16,325,020 |
|
$ |
14,151,565 |
|
$ |
13,330,052 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Coverage of credit loss reserves for loans and leases held for investment, excluding PPP |
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(Dollars in thousands except per share data) |
Q2 2022 |
|
Q1 2022 |
|
Q4 2021 |
|
Q3 2021 |
|
Q2 2021 |
|||||
|
Loans and leases receivable |
$ |
13,783,155 |
|
$ |
12,314,757 |
|
$ |
12,268,306 |
|
$ |
12,927,956 |
|
$ |
14,077,198 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Loans receivable, PPP |
|
(1,570,160) |
|
|
(2,195,902) |
|
|
(3,250,008) |
|
|
(4,957,357) |
|
|
(6,305,056) |
|
Loans and leases held for investment, excluding PPP |
$ |
12,212,995 |
|
$ |
10,118,855 |
|
$ |
9,018,298 |
|
$ |
7,970,599 |
|
$ |
7,772,142 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Allowance for credit losses on loans and leases |
$ |
156,530 |
|
$ |
145,847 |
|
$ |
137,804 |
|
$ |
131,496 |
|
$ |
125,436 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Coverage of credit loss reserves for loans and leases held for investment, excluding PPP |
|
1.28 % |
|
|
1.44 % |
|
|
1.53 % |
|
|
1.65 % |
|
|
1.61 % |
David W. Patti, Communications Director 610-451-9452