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Customers Bancorp Reports Results for Second Quarter 2025


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

Second Quarter 2025 Highlights

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

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

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

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

CEO Commentary

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

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

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

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

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

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

Financial Highlights

At or Three Months Ended

(Dollars in thousands, except per share data)

June 30,

2025

March 31,

2025

Increase (Decrease)

Profitability Metrics:

Net income available for common shareholders

$

55,846

$

9,523

$

46,323

486.4

%

Diluted earnings per share

$

1.73

$

0.29

$

1.44

496.6

%

Core earnings*

$

58,147

$

50,002

$

8,145

16.3

%

Adjusted core earnings*

$

58,147

$

50,002

$

8,145

16.3

%

Core earnings per share*

$

1.80

$

1.54

$

0.26

16.9

%

Adjusted core earnings per share*

$

1.80

$

1.54

$

0.26

16.9

%

Return on average assets (“ROAA”)

1.09

%

0.23

%

0.86

Core ROAA*

1.10

%

0.97

%

0.13

Adjusted core ROAA*

1.10

%

0.97

%

0.13

Return on average common equity (“ROCE”)

12.79

%

2.23

%

10.56

Core ROCE*

13.32

%

11.72

%

1.60

Adjusted core ROCE*

13.32

%

11.72

%

1.60

Net interest margin, tax equivalent

3.27

%

3.13

%

0.14

Yield on loans (Loan yield)

6.61

%

6.57

%

0.04

Cost of deposits

2.85

%

2.82

%

0.03

Efficiency ratio

51.23

%

52.94

%

(1.71

)

Core efficiency ratio*

51.56

%

52.69

%

(1.13

)

Adjusted core efficiency ratio*

51.56

%

52.69

%

(1.13

)

Balance Sheet Trends:

Total assets

$

22,550,800

$

22,423,044

$

127,756

0.6

%

Total cash and investment securities

$

6,234,043

$

6,424,406

$

(190,363

)

(3.0

)%

Total loans and leases

$

15,412,400

$

15,097,968

$

314,432

2.1

%

Non-interest bearing demand deposits

$

5,481,065

$

5,552,605

$

(71,540

)

(1.3

)%

Total deposits

$

18,976,018

$

18,932,925

$

43,093

0.2

%

Capital Metrics:

Common Equity to Total Assets

7.9

%

7.7

%

0.2

Tangible Common Equity to Tangible Assets*

7.9

%

7.7

%

0.2

Book Value per common share

$

56.36

$

54.85

$

1.51

2.8

%

Tangible Book Value per common share*

$

56.24

$

54.74

$

1.50

2.7

%

Common equity Tier 1 capital ratio(1)

12.0

%

11.7

%

0.3

Total risk based capital ratio(1)

14.5

%

14.6

%

(0.1

)

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

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

Financial Highlights

At or Three Months Ended

Six Months Ended

(Dollars in thousands, except per share data)

June 30,

2025

June 30,

2024

Increase (Decrease)

June 30,

2025

June 30,

2024

Increase (Decrease)

Profitability Metrics:

Net income available for common shareholders

$

55,846

$

54,300

$

1,546

2.8

%

$

65,369

$

100,226

$

(34,857

)

(34.8

)%

Diluted earnings per share

$

1.73

$

1.66

$

0.07

4.2

%

$

2.02

$

3.06

$

(1.04

)

(34.0

)%

Core earnings*

$

58,147

$

48,567

$

9,580

19.7

%

$

108,149

$

95,099

$

13,050

13.7

%

Adjusted core earnings*

$

58,147

$

48,567

$

9,580

19.7

%

$

108,149

$

103,704

$

4,445

4.3

%

Core earnings per share*

$

1.80

$

1.49

$

0.31

20.8

%

$

3.33

$

2.90

$

0.43

14.8

%

Adjusted core earnings per share*

$

1.80

$

1.49

$

0.31

20.8

%

$

3.33

$

3.16

$

0.17

5.4

%

Return on average assets (“ROAA”)

1.09

%

1.11

%

(0.02

)

0.67

%

1.02

%

(0.35

)

Core ROAA*

1.10

%

1.00

%

0.10

1.04

%

0.98

%

0.06

Adjusted core ROAA*

1.10

%

1.00

%

0.10

1.04

%

1.06

%

(0.02

)

Return on average common equity (“ROCE”)

12.79

%

13.85

%

(1.06

)

7.57

%

12.98

%

(5.41

)

Core ROCE*

13.32

%

12.39

%

0.93

12.53

%

12.32

%

0.21

Adjusted core ROCE*

13.32

%

12.39

%

0.93

12.53

%

13.43

%

(0.90

)

Net interest margin, tax equivalent

3.27

%

3.29

%

(0.02

)

3.20

%

3.20

%

—

Yield on loans (Loan yield)

6.61

%

7.17

%

(0.56

)

6.59

%

7.11

%

(0.52

)

Cost of deposits

2.85

%

3.40

%

(0.55

)

2.84

%

3.43

%

(0.59

)

Efficiency ratio

51.23

%

51.87

%

(0.64

)

52.06

%

53.16

%

(1.10

)

Core efficiency ratio*

51.56

%

53.47

%

(1.91

)

52.11

%

53.85

%

(1.74

)

Adjusted core efficiency ratio*

51.56

%

53.47

%

(1.91

)

52.11

%

50.79

%

1.32

Balance Sheet Trends:

Total assets

$

22,550,800

$

20,942,975

$

1,607,825

7.7

%

Total cash and investment securities

$

6,234,043

$

6,523,036

$

(288,993

)

(4.4

)%

Total loans and leases

$

15,412,400

$

13,632,639

$

1,779,761

13.1

%

Non-interest bearing demand

$

5,481,065

$

4,474,862

$

1,006,203

22.5

%

Total deposits

$

18,976,018

$

17,678,093

$

1,297,925

7.3

%

Capital Metrics:

Common Equity to Total Assets

7.9

%

7.7

%

0.2

Tangible Common Equity to Tangible Assets*

7.9

%

7.7

%

0.2

Book Value per common share

$

56.36

$

50.81

$

5.55

10.9

%

Tangible Book Value per common share*

$

56.24

$

50.70

$

5.54

10.9

%

Common equity Tier 1 capital ratio(1)

12.0

%

12.8

%

(0.8

)

Total risk based capital ratio(1)

14.5

%

15.8

%

(1.3

)

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

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

Key Balance Sheet Trends

Loans and Leases

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

(Dollars in thousands)

June 30,

2025

% of

Total

March 31,

2025

% of

Total

June 30,

2024

% of

Total

Loans and Leases Held for Investment

Commercial:

Commercial & industrial:

Specialized lending

$

6,454,661

42.0

%

$

6,070,093

40.3

%

$

5,528,745

41.7

%

Other commercial & industrial

1,037,684

6.8

1,062,933

7.0

1,092,146

8.2

Mortgage finance

1,625,764

10.6

1,477,896

9.8

1,122,812

8.5

Multifamily

2,247,282

14.6

2,322,123

15.4

2,067,332

15.6

Commercial real estate owner occupied

1,065,006

6.9

1,139,126

7.6

805,779

6.1

Commercial real estate non-owner occupied

1,497,385

9.7

1,438,906

9.6

1,202,606

9.1

Construction

98,626

0.6

154,647

1.0

163,409

1.2

Total commercial loans and leases

14,026,408

91.2

13,665,724

90.7

11,982,829

90.4

Consumer:

Residential

520,570

3.4

496,772

3.3

481,503

3.6

Manufactured housing

30,287

0.2

31,775

0.2

35,901

0.3

Installment:

Personal

457,728

3.0

493,276

3.3

474,481

3.6

Other

344,444

2.2

372,892

2.5

282,201

2.1

Total installment loans

802,172

5.2

866,168

5.8

756,682

5.7

Total consumer loans

1,353,029

8.8

1,394,715

9.3

1,274,086

9.6

Total loans and leases held for investment

$

15,379,437

100.0

%

$

15,060,439

100.0

%

$

13,256,915

100.0

%

Loans Held for Sale

Residential

$

5,180

15.7

%

$

1,465

3.9

%

$

2,684

0.7

%

Installment:

Personal

27,682

84.0

36,000

95.9

125,598

33.4

Other

101

0.3

64

0.2

247,442

65.9

Total installment loans

27,783

84.3

36,064

96.1

373,040

99.3

Total loans held for sale

$

32,963

100.0

%

$

37,529

100.0

%

$

375,724

100.0

%

Total loans and leases portfolio

$

15,412,400

$

15,097,968

$

13,632,639

Loans and Leases Held for Investment

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

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

Loans Held for Sale

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

Allowance for Credit Losses on Loans and Leases

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

At or Three Months Ended

At or Three Months Ended

(Dollars in thousands)

June 30,

2025

March 31,

2025

Increase

(Decrease)

June 30,

2025

June 30,

2024

Increase

(Decrease)

Allowance for credit losses on loans and leases

$

147,418

$

141,076

$

6,342

$

147,418

$

132,436

$

14,982

Provision (benefit) for credit losses on loans and leases

$

18,457

$

21,445

$

(2,988

)

$

18,457

$

17,851

$

606

Net charge-offs from loans held for investment

$

13,115

$

17,144

$

(4,029

)

$

13,115

$

18,711

$

(5,596

)

Annualized net charge-offs to average loans and leases

0.35

%

0.48

%

0.35

%

0.56

%

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

1.07

%

1.04

%

1.07

%

1.08

%

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

Provision (benefit) for Credit Losses

Three Months Ended

Three Months Ended

(Dollars in thousands)

June 30,

2025

March 31,

2025

Increase

(Decrease)

June 30,

2025

June 30,

2024

Increase

(Decrease)

Provision (benefit) for credit losses on loans and leases

$

18,457

$

21,445

$

(2,988

)

$

18,457

$

17,851

$

606

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

2,324

6,852

(4,528

)

2,324

270

2,054

Provision for credit losses

20,781

28,297

(7,516

)

20,781

18,121

2,660

Provision (benefit) for credit losses on unfunded commitments

1,594

1,208

386

1,594

1,594

—

Total provision for credit losses

$

22,375

$

29,505

$

(7,130

)

$

22,375

$

19,715

$

2,660

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

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

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

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

Asset Quality

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

(Dollars in thousands)

June 30,

2025

March 31,

2025

Increase

(Decrease)

June 30,

2025

June 30,

2024

Increase

(Decrease)

Non-performing assets (“NPAs”):

Nonaccrual / non-performing loans (“NPLs”)

$

28,443

$

43,513

$

(15,070

)

$

28,443

$

47,380

$

(18,937

)

Non-performing assets

$

60,778

$

57,960

$

2,818

$

60,778

$

47,444

$

13,334

NPLs to total loans and leases

0.18

%

0.29

%

0.18

%

0.35

%

Reserves to NPLs

518.29

%

324.22

%

518.29

%

279.52

%

NPAs to total assets

0.27

%

0.26

%

0.27

%

0.23

%

Loans and leases(1) risk ratings:

Commercial loans and leases

Pass

$

12,047,656

$

11,815,403

$

232,253

$

12,047,656

$

10,500,922

$

1,546,734

Special Mention

174,587

189,155

(14,568

)

174,587

170,014

4,573

Substandard

256,849

276,018

(19,169

)

256,849

270,898

(14,049

)

Total commercial loans and leases

12,479,092

12,280,576

198,516

12,479,092

10,941,834

1,537,258

Consumer loans

Performing

1,209,377

1,242,753

(33,376

)

1,209,377

1,256,816

(47,439

)

Non-performing

20,298

13,803

6,495

20,298

17,270

3,028

Total consumer loans

1,229,675

1,256,556

(26,881

)

1,229,675

1,274,086

(44,411

)

Loans and leases receivable(1)

$

13,708,767

$

13,537,132

$

171,635

$

13,708,767

$

12,215,920

$

1,492,847

(1) Risk ratings are assigned to loans and leases held for investment, and excludes loans held for sale, loans receivable, mortgage finance, at fair value, loans receivable, installment, at fair value and eligible PPP loans that are fully guaranteed by the Small Business Administration.

Over the last decade, the Bank has developed a suite of commercial loan products with an important common denominator: a relatively low credit risk assumption. The Bank’s commercial and industrial (“C&I”), mortgage finance, corporate and specialized lending lines of business, and multifamily loans for example, are characterized by conservative underwriting standards and historically low loss rates. Because of this emphasis, the Bank’s credit quality to date has been strong despite a challenging economic and interest rate environment. Maintaining strong asset quality also requires a highly active portfolio monitoring process. In addition to frequent client outreach and monitoring at the individual loan level, management employs a bottom-up data driven approach to analyze the commercial portfolio.

Total consumer installment loans held for investment at June 30, 2025 were less than 4% of total assets and approximately 5% of total loans and leases held for investment, and were supported by an allowance for credit losses of $44.9 million. At June 30, 2025, the consumer installment portfolio had the following characteristics: average original FICO score of 739, average debt-to-income of 20% and average borrower income of $106 thousand.

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

Investment Securities

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

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

(Dollars in thousands)

June 30,

2025

March 31,

2025

June 30,

2024

Debt securities, available for sale

$

1,846,566

$

2,024,437

$

2,477,758

Equity securities

30,840

33,118

33,892

Investment securities, at fair value

1,877,406

2,057,555

2,511,650

Debt securities, held to maturity

853,126

938,161

962,799

Total investment securities portfolio

$

2,730,532

$

2,995,716

$

3,474,449

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

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

Deposits

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

(Dollars in thousands)

June 30,

2025

% of

Total

March 31,

2025

% of

Total

June 30,

2024

% of

Total

Demand, non-interest bearing

$

5,481,065

28.9

%

$

5,552,605

29.3

%

$

4,474,862

25.3

%

Demand, interest bearing

4,912,839

25.9

5,137,961

27.2

5,894,056

33.4

Total demand deposits

10,393,904

54.8

10,690,566

56.5

10,368,918

58.7

Savings

1,375,072

7.2

1,327,854

7.0

1,573,661

8.9

Money market

4,206,516

22.2

4,057,458

21.4

3,539,815

20.0

Time deposits

3,000,526

15.8

2,857,047

15.1

2,195,699

12.4

Total deposits

$

18,976,018

100.0

%

$

18,932,925

100.0

%

$

17,678,093

100.0

%

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

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

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

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

Borrowings

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

(Dollars in thousands)

June 30,

2025

March 31,

2025

June 30,

2024

FHLB advances

$

1,195,377

$

1,133,456

$

1,018,349

Senior notes

99,138

99,103

123,970

Subordinated debt

182,649

182,579

182,370

Total borrowings

$

1,477,164

$

1,415,138

$

1,324,689

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

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

Capital

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

(Dollars in thousands except per share data)

June 30,

2025

March 31,

2025

June 30,

2024

Customers Bancorp, Inc.

Common Equity

$

1,781,357

$

1,726,766

$

1,609,071

Tangible Common Equity*

$

1,777,728

$

1,723,137

$

1,605,442

Common Equity to Total Assets

7.9

%

7.7

%

7.7

%

Tangible Common Equity to Tangible Assets*

7.9

%

7.7

%

7.7

%

Book Value per common share

$

56.36

$

54.85

$

50.81

Tangible Book Value per common share*

$

56.24

$

54.74

$

50.70

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

12.0

%

11.7

%

12.8

%

Total risk based capital ratio(1)

14.5

%

14.6

%

15.8

%

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

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

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

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

At the Customers Bancorp level, the CET 1 ratio (estimate), total risk based capital ratio (estimate), common equity to total assets ratio and tangible common equity to tangible assets ratio* (“TCE / TA ratio”) were 12.0%, 14.5%, 7.9%, and 7.9%, respectively, at June 30, 2025.

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

Key Profitability Trends

Net Interest Income

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

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

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

Non-Interest Income

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

Three Months Ended

Three Months Ended

(Dollars in thousands)

June 30,

2025

March 31,

2025

Increase

(Decrease)

June 30,

2025

June 30,

2024

Increase

(Decrease)

Commercial lease income

$

11,056

$

10,668

$

388

$

11,056

$

10,282

$

774

Loan fees

9,106

7,235

1,871

9,106

5,233

3,873

Bank-owned life insurance

2,249

4,660

(2,411

)

2,249

2,007

242

Mortgage finance transactional fees

1,175

933

242

1,175

1,058

117

Net gain (loss) on sale of loans and leases

—

2

(2

)

—

(238

)

238

Net gain (loss) on sale of investment securities

(1,797

)

—

(1,797

)

(1,797

)

(719

)

(1,078

)

Impairment loss on debt securities

—

(51,319

)

51,319

—

—

—

Unrealized gain on equity method investments

—

—

—

—

11,041

(11,041

)

Other

7,817

3,331

4,486

7,817

2,373

5,444

Total non-interest income (loss)

$

29,606

$

(24,490

)

$

54,096

$

29,606

$

31,037

$

(1,431

)

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

Non-interest income totaled $29.6 million for Q2 2025, a decrease of $1.4 million compared to Q2 2024. The decrease was primarily due to $11.0 million of unrealized gain on equity method investments purchased at a discount in Q2 2024, partially offset by increases in loan fees of $3.9 million primarily resulting from increased unused line of credit fees, $1.8 million of fees associated with sunsetting of a loan origination program with a fintech company, which was recently acquired by a bank, and deposit account fees of $1.7 million.

Non-Interest Expense

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

Three Months Ended

Three Months Ended

(Dollars in thousands)

June 30,

2025

March 31,

2025

Increase

(Decrease)

June 30,

2025

June 30,

2024

Increase

(Decrease)

Salaries and employee benefits

$

45,848

$

42,674

$

3,174

$

45,848

$

44,947

$

901

Technology, communication and bank operations

10,382

11,312

(930

)

10,382

16,227

(5,845

)

Commercial lease depreciation

8,743

8,463

280

8,743

7,829

914

Professional services

13,850

11,857

1,993

13,850

6,104

7,746

Loan servicing

4,053

4,630

(577

)

4,053

3,516

537

Occupancy

3,551

3,412

139

3,551

3,120

431

FDIC assessments, non-income taxes and regulatory fees

11,906

11,750

156

11,906

10,236

1,670

Advertising and promotion

461

528

(67

)

461

1,254

(793

)

Other

7,832

8,145

(313

)

7,832

10,219

(2,387

)

Total non-interest expense

$

106,626

$

102,771

$

3,855

$

106,626

$

103,452

$

3,174

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

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

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

Taxes

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

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

Outlook

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

Webcast

Date:

Friday, July 25, 2025

Time:

9:00 AM EDT

The live audio webcast, presentation slides, and earnings press release will be made available at https://www.customersbank.com and at the Customers Bancorp 2nd Quarter Earnings Webcast.

You may submit questions in advance of the live webcast by emailing our Head of Corporate Communications, Jordan Baucum at [email protected].

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

Institutional Background

Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s top-performing banking companies with over $22 billion in assets making it one of the 80 largest bank holding companies in the U.S. Customers Bank’s commercial and consumer clients benefit from a full suite of technology-enabled tailored product experiences delivered by best-in-class customer service distinguished by a Single Point of Contact approach. In addition to traditional lines such as C&I lending, commercial real estate lending and multifamily lending, Customers Bank also provides a number of national corporate banking services to specialized lending clients. Major accolades include:

  • No. 1 on American Banker 2024 list of top-performing banks with $10B to $50B in assets
  • No. 72 out of the 100 largest publicly traded banks in 2025 Forbes Best Banks list
  • 2024 Inc. Magazine Best in Business List in Financial Services Category
  • Net Promoter Score of 73 compared to industry average of 41

A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender. Learn more: www.customersbank.com.

“Safe Harbor” Statement

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

Q2 2025 Overview

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

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

EARNINGS SUMMARY - UNAUDITED

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

Q2

Q1

Q4

Q3

Q2

Six Months Ended

June 30,

2025

2025

2024

2024

2024

2025

2024

GAAP Profitability Metrics:

Net income available to common shareholders

$

55,846

$

9,523

$

23,266

$

42,937

$

54,300

$

65,369

$

100,226

Per share amounts:

Earnings per share - basic

$

1.77

$

0.30

$

0.74

$

1.36

$

1.72

$

2.07

$

3.18

Earnings per share - diluted

$

1.73

$

0.29

$

0.71

$

1.31

$

1.66

$

2.02

$

3.06

Book value per common share(1)

$

56.36

$

54.85

$

54.20

$

53.07

$

50.81

$

56.36

$

50.81

CUBI stock price(1)

$

58.74

$

50.20

$

48.68

$

46.45

$

47.98

$

58.74

$

47.98

CUBI stock price as % of book value(1)

104

%

92

%

90

%

88

%

94

%

104

%

94

%

Average shares outstanding - basic

31,585,390

31,447,623

31,346,920

31,567,797

31,649,715

31,516,887

31,561,569

Average shares outstanding - diluted

32,374,061

32,490,572

32,557,621

32,766,488

32,699,149

32,431,995

32,776,842

Shares outstanding(1)

31,606,934

31,479,132

31,346,507

31,342,107

31,667,655

31,606,934

31,667,655

Return on average assets (“ROAA”)

1.09

%

0.23

%

0.48

%

0.88

%

1.11

%

0.67

%

1.02

%

Return on average common equity (“ROCE”)

12.79

%

2.23

%

5.50

%

10.44

%

13.85

%

7.57

%

12.98

%

Net interest margin, tax equivalent

3.27

%

3.13

%

3.11

%

3.06

%

3.29

%

3.20

%

3.20

%

Efficiency ratio

51.23

%

52.94

%

56.86

%

62.40

%

51.87

%

52.06

%

53.16

%

Non-GAAP Profitability Metrics(2):

Core earnings

$

58,147

$

50,002

$

44,168

$

43,838

$

48,567

$

108,149

$

95,099

Core pre-tax pre-provision net income

$

101,785

$

93,489

$

84,224

$

64,824

$

89,220

$

195,274

$

172,894

Per share amounts:

Core earnings per share - diluted

$

1.80

$

1.54

$

1.36

$

1.34

$

1.49

$

3.33

$

2.90

Tangible book value per common share(1)

$

56.24

$

54.74

$

54.08

$

52.96

$

50.70

$

56.24

$

50.70

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

104

%

92

%

90

%

88

%

95

%

104

%

95

%

Core ROAA

1.10

%

0.97

%

0.86

%

0.89

%

1.00

%

1.04

%

0.98

%

Core ROCE

13.32

%

11.72

%

10.44

%

10.66

%

12.39

%

12.53

%

12.32

%

Core pre-tax pre-provision ROAA

1.83

%

1.70

%

1.51

%

1.21

%

1.71

%

1.76

%

1.64

%

Core pre-tax pre-provision ROCE

22.59

%

21.11

%

19.04

%

14.84

%

21.79

%

21.86

%

21.41

%

Core efficiency ratio

51.56

%

52.69

%

56.12

%

61.69

%

53.47

%

52.11

%

53.85

%

Asset Quality:

Net charge-offs

$

13,115

$

17,144

$

14,612

$

17,044

$

18,711

$

30,259

$

36,679

Annualized net charge-offs to average total loans and leases

0.35

%

0.48

%

0.41

%

0.50

%

0.56

%

0.41

%

0.56

%

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

0.18

%

0.29

%

0.30

%

0.34

%

0.35

%

0.18

%

0.35

%

Reserves to NPLs(1)

518.29

%

324.22

%

316.06

%

281.36

%

279.52

%

518.29

%

279.52

%

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

0.27

%

0.26

%

0.25

%

0.22

%

0.23

%

0.27

%

0.23

%

Customers Bank Capital Ratios(3):

Common equity Tier 1 capital to risk-weighted assets

13.0

%

12.40

%

12.96

%

13.64

%

14.17

%

13.0

%

14.17

%

Tier 1 capital to risk-weighted assets

13.0

%

12.40

%

12.96

%

13.64

%

14.17

%

13.0

%

14.17

%

Total capital to risk-weighted assets

14.4

%

13.92

%

14.34

%

15.06

%

15.64

%

14.4

%

15.64

%

Tier 1 capital to average assets (leverage ratio)

8.9

%

8.43

%

8.65

%

9.08

%

9.16

%

8.9

%

9.16

%

(1) Metric is a spot balance for the last day of each quarter presented.

(2) Customers’ reasons for the use of these non-GAAP measures and a detailed reconciliation between the non-GAAP measures and the comparable GAAP amounts are included at the end of this document.

(3) Regulatory capital ratios are estimated for Q2 2025 and actual for the remaining periods. In accordance with regulatory capital rules, Customers elected to apply the CECL capital transition provisions which delayed the effects of CECL on regulatory capital for two years until January 1, 2022, followed by a three-year transition period. The cumulative CECL capital transition impact as of December 31, 2021 which amounted to $61.6 million was phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of June 30, 2025, our regulatory capital ratios reflected the full effect of CECL on regulatory capital.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

(Dollars in thousands, except per share data)

Six Months Ended

Q2

Q1

Q4

Q3

Q2

June 30,

2025

2025

2024

2024

2024

2025

2024

Interest income:

Loans and leases

$

246,869

$

231,008

$

230,534

$

228,659

$

224,265

$

477,877

$

442,264

Investment securities

37,381

34,339

39,638

46,265

47,586

71,720

94,388

Interest earning deposits

39,972

42,914

48,147

44,372

45,506

82,886

98,323

Loans held for sale

1,806

4,761

9,447

10,907

13,671

6,567

25,719

Other

1,973

1,887

2,140

1,910

3,010

3,860

5,121

Total interest income

328,001

314,909

329,906

332,113

334,038

642,910

665,815

Interest expense:

Deposits

134,045

131,308

144,974

155,829

148,784

265,353

302,509

FHLB advances

12,717

11,801

12,595

12,590

13,437

24,518

26,922

Subordinated debt

3,229

3,212

3,349

3,537

2,734

6,441

5,423

Other borrowings

1,307

1,142

1,167

1,612

1,430

2,449

2,923

Total interest expense

151,298

147,463

162,085

173,568

166,385

298,761

337,777

Net interest income

176,703

167,446

167,821

158,545

167,653

344,149

328,038

Provision for credit losses

20,781

28,297

21,194

17,066

18,121

49,078

35,191

Net interest income after provision for credit losses

155,922

139,149

146,627

141,479

149,532

295,071

292,847

Non-interest income:

Commercial lease income

11,056

10,668

10,604

10,093

10,282

21,724

19,965

Loan fees

9,106

7,235

8,639

8,011

5,233

16,341

10,513

Bank-owned life insurance

2,249

4,660

2,125

2,049

2,007

6,909

5,268

Mortgage finance transactional fees

1,175

933

1,010

1,087

1,058

2,108

2,004

Net gain (loss) on sale of loans and leases

—

2

(852

)

(14,548

)

(238

)

2

(228

)

Net gain (loss) on sale of investment securities

(1,797

)

—

(26,260

)

—

(719

)

(1,797

)

(749

)

Impairment loss on debt securities

—

(51,319

)

—

—

—

(51,319

)

—

Unrealized gain on equity method investments

—

—

389

—

11,041

—

11,041

Other

7,817

3,331

3,954

1,865

2,373

11,148

4,454

Total non-interest income (loss)

29,606

(24,490

)

(391

)

8,557

31,037

5,116

52,268

Non-interest expense:

Salaries and employee benefits

45,848

42,674

47,147

47,717

44,947

88,522

80,972

Technology, communication and bank operations

10,382

11,312

13,435

13,588

16,227

21,694

38,131

Commercial lease depreciation

8,743

8,463

8,933

7,811

7,829

17,206

15,799

Professional services

13,850

11,857

13,473

9,048

6,104

25,707

12,457

Loan servicing

4,053

4,630

4,584

3,778

3,516

8,683

7,547

Occupancy

3,551

3,412

3,335

2,987

3,120

6,963

5,467

FDIC assessments, non-income taxes and regulatory fees

11,906

11,750

10,077

7,902

10,236

23,656

23,705

Advertising and promotion

461

528

1,645

908

1,254

989

1,936

Other

7,832

8,145

7,746

10,279

10,219

15,977

16,607

Total non-interest expense

106,626

102,771

110,375

104,018

103,452

209,397

202,621

Income before income tax expense (benefit)

78,902

11,888

35,861

46,018

77,117

90,790

142,494

Income tax expense (benefit)

17,963

(1,024

)

8,946

(725

)

19,032

16,939

34,683

Net income

60,939

12,912

26,915

46,743

58,085

73,851

107,811

Preferred stock dividends

3,185

3,389

3,649

3,806

3,785

6,574

7,585

Loss on redemption of preferred stock

1,908

—

—

—

—

1,908

—

Net income available to common shareholders

$

55,846

$

9,523

$

23,266

$

42,937

$

54,300

$

65,369

$

100,226

Basic earnings per common share

$

1.77

$

0.30

$

0.74

$

1.36

$

1.72

$

2.07

$

3.18

Diluted earnings per common share

1.73

0.29

0.71

1.31

1.66

2.02

3.06

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET - UNAUDITED

(Dollars in thousands)

June 30,

March 31,

December 31,

September 30,

June 30,

2025

2025

2024

2024

2024

ASSETS

Cash and due from banks

$

72,986

$

62,146

$

56,787

$

39,429

$

45,045

Interest earning deposits

3,430,525

3,366,544

3,729,144

3,048,593

3,003,542

Cash and cash equivalents

3,503,511

3,428,690

3,785,931

3,088,022

3,048,587

Investment securities, at fair value

1,877,406

2,057,555

2,019,694

2,412,069

2,511,650

Investment securities held to maturity

853,126

938,161

991,937

1,064,437

962,799

Loans held for sale

32,963

37,529

204,794

275,420

375,724

Loans and leases receivable

13,719,829

13,555,820

13,127,634

12,527,283

12,254,204

Loans receivable, mortgage finance, at fair value

1,536,254

1,366,460

1,321,128

1,250,413

1,002,711

Loans receivable, installment, at fair value

123,354

138,159

—

—

—

Allowance for credit losses on loans and leases

(147,418

)

(141,076

)

(136,775

)

(133,158

)

(132,436

)

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

15,232,019

14,919,363

14,311,987

13,644,538

13,124,479

FHLB, Federal Reserve Bank, and other restricted stock

100,590

96,758

96,214

95,035

92,276

Accrued interest receivable

101,481

105,800

108,351

115,588

112,788

Bank premises and equipment, net

5,978

6,653

6,668

6,730

7,019

Bank-owned life insurance

300,747

298,551

297,641

295,531

293,108

Other real estate owned

12,306

—

—

—

—

Goodwill and other intangibles

3,629

3,629

3,629

3,629

3,629

Other assets

527,044

530,355

481,395

455,083

410,916

Total assets

$

22,550,800

$

22,423,044

$

22,308,241

$

21,456,082

$

20,942,975

LIABILITIES AND SHAREHOLDERS’ EQUITY

Demand, non-interest bearing deposits

$

5,481,065

$

5,552,605

$

5,608,288

$

4,670,809

$

4,474,862

Interest bearing deposits

13,494,953

13,380,320

13,238,173

13,398,580

13,203,231

Total deposits

18,976,018

18,932,925

18,846,461

18,069,389

17,678,093

FHLB advances

1,195,377

1,133,456

1,128,352

1,117,229

1,018,349

Other borrowings

99,138

99,103

99,068

99,033

123,970

Subordinated debt

182,649

182,579

182,509

182,439

182,370

Accrued interest payable and other liabilities

234,060

210,421

215,168

186,812

193,328

Total liabilities

20,687,242

20,558,484

20,471,558

19,654,902

19,196,110

Preferred stock

82,201

137,794

137,794

137,794

137,794

Common stock

36,123

35,995

35,758

35,734

35,686

Additional paid in capital

572,473

570,172

575,333

571,609

567,345

Retained earnings

1,391,380

1,335,534

1,326,011

1,302,745

1,259,808

Accumulated other comprehensive income (loss), net

(71,325

)

(67,641

)

(96,560

)

(106,082

)

(131,358

)

Treasury stock, at cost

(147,294

)

(147,294

)

(141,653

)

(140,620

)

(122,410

)

Total shareholders’ equity

1,863,558

1,864,560

1,836,683

1,801,180

1,746,865

Total liabilities and shareholders’ equity

$

22,550,800

$

22,423,044

$

22,308,241

$

21,456,082

$

20,942,975

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED

(Dollars in thousands)

Three Months Ended

June 30, 2025

March 31, 2025

June 30, 2024

Average

Balance

Interest

Income or

Expense

Average

Yield or

Cost (%)

Average

Balance

Interest

Income or

Expense

Average

Yield or

Cost (%)

Average

Balance

Interest

Income or

Expense

Average

Yield or

Cost (%)

Assets

Interest earning deposits

$

3,565,168

$

39,972

4.50%

$

3,857,617

$

42,914

4.51%

$

3,325,771

$

45,506

5.50%

Investment securities(1)

2,890,878

37,381

5.19%

3,100,429

34,339

4.49%

3,732,565

47,586

5.13%

Loans and leases:

Commercial & industrial:

Specialized lending loans and leases(2)

6,785,684

126,854

7.50%

6,474,034

120,951

7.58%

5,446,882

120,977

8.93%

Other commercial & industrial loans(2)

1,484,528

25,862

6.99%

1,542,846

23,933

6.29%

1,540,191

25,119

6.56%

Mortgage finance loans

1,501,484

18,349

4.90%

1,252,602

14,752

4.78%

1,151,407

15,087

5.27%

Multifamily loans

2,317,381

25,281

4.38%

2,273,893

23,664

4.22%

2,108,835

21,461

4.09%

Non-owner occupied commercial real estate loans

1,581,087

23,003

5.84%

1,550,372

21,564

5.64%

1,396,771

20,470

5.89%

Residential mortgages

537,008

6,344

4.74%

530,613

6,228

4.76%

520,791

5,955

4.60%

Installment loans

879,972

22,982

10.48%

938,193

24,677

10.67%

1,186,486

28,867

9.79%

Total loans and leases(3)

15,087,144

248,675

6.61%

14,562,553

235,769

6.57%

13,351,363

237,936

7.17%

Other interest-earning assets

133,824

1,973

5.91%

127,793

1,887

5.99%

110,585

3,010

10.95%

Total interest-earning assets

21,677,014

328,001

6.07%

21,648,392

314,909

5.89%

20,520,284

334,038

6.54%

Non-interest-earning assets

685,975

666,571

464,919

Total assets

$

22,362,989

$

22,314,963

$

20,985,203

Liabilities

Interest checking accounts

$

4,935,587

$

47,245

3.84%

$

5,358,206

$

49,903

3.78%

$

5,719,698

$

64,047

4.50%

Money market deposit accounts

4,137,035

40,397

3.92%

3,882,855

37,767

3.94%

3,346,718

38,167

4.59%

Other savings accounts

1,325,639

12,767

3.86%

1,151,439

10,691

3.77%

1,810,375

21,183

4.71%

Certificates of deposit

2,852,645

33,636

4.73%

2,749,720

32,947

4.86%

2,034,605

25,387

5.02%

Total interest-bearing deposits(4)

13,250,906

134,045

4.06%

13,142,220

131,308

4.05%

12,911,396

148,784

4.63%

Borrowings

1,417,370

17,253

4.88%

1,346,941

16,155

4.86%

1,454,010

17,601

4.87%

Total interest-bearing liabilities

14,668,276

151,298

4.14%

14,489,161

147,463

4.13%

14,365,406

166,385

4.66%

Non-interest-bearing deposits(4)

5,593,581

5,710,644

4,701,695

Total deposits and borrowings

20,261,857

2.99%

20,199,805

2.96%

19,067,101

3.51%

Other non-interest-bearing liabilities

221,465

246,455

203,714

Total liabilities

20,483,322

20,446,260

19,270,815

Shareholders’ equity

1,879,667

1,868,703

1,714,388

Total liabilities and shareholders’ equity

$

22,362,989

$

22,314,963

$

20,985,203

Net interest income

176,703

167,446

167,653

Tax-equivalent adjustment

366

363

393

Net interest earnings

$

177,069

$

167,809

$

168,046

Interest spread

3.07%

2.93%

3.03%

Net interest margin

3.27%

3.13%

3.28%

Net interest margin tax equivalent(5)

3.27%

3.13%

3.29%

(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.

(2) Includes owner occupied commercial real estate loans.

(3) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.

(4) Total costs of deposits (including interest bearing and non-interest bearing) were 2.85%, 2.82% and 3.40% for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.

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

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

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

(Dollars in thousands)

Six Months Ended

June 30, 2025

June 30, 2024

Average

Balance

Interest

Income or

Expense

Average

Yield or

Cost (%)

Average

Balance

Interest

Income or

Expense

Average

Yield or

Cost (%)

Assets

Interest earning deposits

$

3,710,585

$

82,886

4.50%

$

3,595,400

$

98,323

5.50%

Investment securities(1)

2,995,074

71,720

4.83%

3,751,831

94,388

5.06%

Loans and leases:

Commercial & industrial:

Specialized lending loans and leases(2)

6,630,720

247,805

7.54%

5,357,613

236,567

8.88%

Other commercial & industrial loans(2)

1,513,526

49,795

6.63%

1,597,428

51,833

6.53%

Mortgage finance loans

1,377,730

33,101

4.85%

1,092,292

27,917

5.14%

Multifamily loans

2,295,757

48,945

4.30%

2,115,243

42,716

4.06%

Non-owner occupied commercial real estate loans

1,565,815

44,567

5.74%

1,372,619

40,649

5.96%

Residential mortgages

533,828

12,572

4.75%

521,659

11,663

4.50%

Installment loans

908,922

47,659

10.57%

1,183,104

56,638

9.63%

Total loans and leases(3)

14,826,298

484,444

6.59%

13,239,958

467,983

7.11%

Other interest-earning assets

130,825

3,860

5.95%

109,055

5,121

9.44%

Total interest-earning assets

21,662,782

642,910

5.98%

20,696,244

665,815

6.46%

Non-interest-earning assets

676,326

463,972

Total assets

$

22,339,108

$

21,160,216

Liabilities

Interest checking accounts

$

5,145,729

$

97,148

3.81%

$

5,629,272

$

125,578

4.49%

Money market deposit accounts

4,010,647

78,164

3.93%

3,289,911

74,978

4.58%

Other savings accounts

1,239,021

23,458

3.82%

1,781,746

42,582

4.81%

Certificates of deposit

2,801,467

66,583

4.79%

2,392,696

59,371

4.99%

Total interest-bearing deposits(4)

13,196,864

265,353

4.05%

13,093,625

302,509

4.65%

Borrowings

1,382,349

33,408

4.87%

1,480,359

35,268

4.79%

Total interest-bearing liabilities

14,579,213

298,761

4.13%

14,573,984

337,777

4.66%

Non-interest-bearing deposits(4)

5,651,789

4,661,341

Total deposits and borrowings

20,231,002

2.98%

19,235,325

3.53%

Other non-interest-bearing liabilities

233,891

234,195

Total liabilities

20,464,893

19,469,520

Shareholders’ equity

1,874,215

1,690,696

Total liabilities and shareholders’ equity

$

22,339,108

$

21,160,216

Net interest income

344,149

328,038

Tax-equivalent adjustment

729

787

Net interest earnings

$

344,878

$

328,825

Interest spread

3.00%

2.93%

Net interest margin

3.20%

3.19%

Net interest margin tax equivalent(5)

3.20%

3.20%

(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.

(2) Includes owner occupied commercial real estate loans.

(3) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.

(4) Total costs of deposits (including interest bearing and non-interest bearing) were 2.84% and 3.43% for the six months ended June 30, 2025 and 2024, respectively.

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

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED

(Dollars in thousands)

June 30,

March 31,

December 31,

September 30,

June 30,

2025

2025

2024

2024

2024

Loans and leases held for investment

Commercial:

Commercial & industrial:

Specialized lending

$

6,454,661

$

6,070,093

$

5,842,420

$

5,468,507

$

5,528,745

Other commercial & industrial

1,037,684

1,062,933

1,062,631

1,087,222

1,092,146

Mortgage finance

1,625,764

1,477,896

1,440,847

1,367,617

1,122,812

Multifamily

2,247,282

2,322,123

2,252,246

2,115,978

2,067,332

Commercial real estate owner occupied

1,065,006

1,139,126

1,100,944

981,904

805,779

Commercial real estate non-owner occupied

1,497,385

1,438,906

1,359,130

1,326,591

1,202,606

Construction

98,626

154,647

147,209

174,509

163,409

Total commercial loans and leases

14,026,408

13,665,724

13,205,427

12,522,328

11,982,829

Consumer:

Residential

520,570

496,772

496,559

500,786

481,503

Manufactured housing

30,287

31,775

33,123

34,481

35,901

Installment:

Personal

457,728

493,276

463,854

453,739

474,481

Other

344,444

372,892

249,799

266,362

282,201

Total installment loans

802,172

866,168

713,653

720,101

756,682

Total consumer loans

1,353,029

1,394,715

1,243,335

1,255,368

1,274,086

Total loans and leases held for investment

$

15,379,437

$

15,060,439

$

14,448,762

$

13,777,696

$

13,256,915

Loans held for sale

Residential

$

5,180

$

1,465

$

1,836

$

2,523

$

2,684

Installment:

Personal

27,682

36,000

40,903

55,799

125,598

Other

101

64

162,055

217,098

247,442

Total installment loans

27,783

36,064

202,958

272,897

373,040

Total loans held for sale

$

32,963

$

37,529

$

204,794

$

275,420

$

375,724

Total loans and leases portfolio

$

15,412,400

$

15,097,968

$

14,653,556

$

14,053,116

$

13,632,639

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

PERIOD END DEPOSIT COMPOSITION - UNAUDITED

(Dollars in thousands)

June 30,

March 31,

December 31,

September 30,

June 30,

2025

2025

2024

2024

2024

Demand, non-interest bearing

$

5,481,065

$

5,552,605

$

5,608,288

$

4,670,809

$

4,474,862

Demand, interest bearing

4,912,839

5,137,961

5,553,698

5,606,500

5,894,056

Total demand deposits

10,393,904

10,690,566

11,161,986

10,277,309

10,368,918

Savings

1,375,072

1,327,854

1,131,819

1,399,968

1,573,661

Money market

4,206,516

4,057,458

3,844,451

3,961,028

3,539,815

Time deposits

3,000,526

2,857,047

2,708,205

2,431,084

2,195,699

Total deposits

$

18,976,018

$

18,932,925

$

18,846,461

$

18,069,389

$

17,678,093

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

ASSET QUALITY - UNAUDITED

(Dollars in thousands)

As of June 30, 2025

As of March 31, 2025

As of June 30, 2024

Loan type

Total loans

Allowance

for credit

losses

Total

reserves to

total loans

Total loans

Allowance

for credit

losses

Total

reserves to

total loans

Total loans

Allowance

for credit

losses

Total

reserves to

total loans

Commercial:

Commercial & industrial, including specialized lending

$

7,581,855

$

36,262

0.48

%

$

7,244,462

$

30,584

0.42

%

$

6,740,992

$

23,721

0.35

%

Multifamily

2,247,282

20,864

0.93

%

2,322,123

18,790

0.81

%

2,067,332

20,652

1.00

%

Commercial real estate owner occupied

1,065,006

12,514

1.18

%

1,139,126

10,780

0.95

%

805,779

8,431

1.05

%

Commercial real estate non-owner occupied

1,497,385

20,679

1.38

%

1,438,906

18,058

1.25

%

1,202,606

17,966

1.49

%

Construction

98,626

2,160

2.19

%

154,647

1,264

0.82

%

163,409

1,856

1.14

%

Total commercial loans and leases receivable

12,490,154

92,479

0.74

%

12,299,264

79,476

0.65

%

10,980,118

72,626

0.66

%

Consumer:

Residential

520,570

6,331

1.22

%

496,772

6,163

1.24

%

481,503

5,884

1.22

%

Manufactured housing

30,287

3,721

12.29

%

31,775

3,800

11.96

%

35,901

4,094

11.40

%

Installment

678,818

44,887

6.61

%

728,009

51,637

7.09

%

756,682

49,832

6.59

%

Total consumer loans receivable

1,229,675

54,939

4.47

%

1,256,556

61,600

4.90

%

1,274,086

59,810

4.69

%

Loans and leases receivable held for investment

13,719,829

147,418

1.07

%

13,555,820

141,076

1.04

%

12,254,204

132,436

1.08

%

Loans receivable, mortgage finance, at fair value

1,536,254

—

—

%

1,366,460

—

—

%

1,002,711

—

—

%

Loans receivable, installment, at fair value

123,354

—

—

%

138,159

—

—

%

—

—

—

%

Loans held for sale

32,963

—

—

%

37,529

—

—

%

375,724

—

—

%

Total loans and leases portfolio

$

15,412,400

$

147,418

0.96

%

$

15,097,968

$

141,076

0.93

%

$

13,632,639

$

132,436

0.97

%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

ASSET QUALITY - UNAUDITED (CONTINUED)

(Dollars in thousands)

As of June 30, 2025

As of March 31, 2025

As of June 30, 2024

Loan type

Non accrual

/NPLs

Total NPLs

to total

loans

Total

reserves to

total NPLs

Non accrual

/NPLs

Total NPLs

to total

loans

Total

reserves to

total NPLs

Non accrual

/NPLs

Total NPLs

to total

loans

Total

reserves to

total NPLs

Commercial:

Commercial & industrial, including specialized lending

$

4,218

0.06

%

859.70

%

$

18,754

0.26

%

163.08

%

$

5,488

0.08

%

432.23

%

Multifamily

—

—

%

—

%

—

—

%

—

%

14,002

0.68

%

147.49

%

Commercial real estate owner occupied

7,005

0.66

%

178.64

%

7,793

0.68

%

138.33

%

9,612

1.19

%

87.71

%

Commercial real estate non-owner occupied

62

0.00

%

33353.23

%

62

0.00

%

29125.81

%

62

0.01

%

28977.42

%

Construction

—

—

%

—

%

—

—

%

—

%

—

—

%

—

%

Total commercial loans and leases receivable

11,285

0.09

%

819.49

%

26,609

0.22

%

298.68

%

29,164

0.27

%

249.03

%

Consumer:

Residential

8,234

1.58

%

76.89

%

8,151

1.64

%

75.61

%

8,179

1.70

%

71.94

%

Manufactured housing

1,608

5.31

%

231.41

%

1,653

5.20

%

229.89

%

2,047

5.70

%

200.00

%

Installment

4,944

0.73

%

907.91

%

4,659

0.64

%

1108.33

%

5,614

0.74

%

887.64

%

Total consumer loans receivable

14,786

1.20

%

371.56

%

14,463

1.15

%

425.91

%

15,840

1.24

%

377.59

%

Loans and leases receivable

26,071

0.19

%

565.45

%

41,072

0.30

%

343.48

%

45,004

0.37

%

294.28

%

Loans receivable, mortgage finance, at fair value

—

—

%

—

%

—

—

%

—

%

—

—

%

—

%

Loans receivable, installment, at fair value

1,961

1.59

%

—

%

2,059

1.49

%

—

%

—

—

%

—

%

Loans held for sale

411

1.25

%

—

%

382

1.02

%

—

%

2,376

0.63

%

—

%

Total loans and leases portfolio

$

28,443

0.18

%

518.29

%

$

43,513

0.29

%

324.22

%

$

47,380

0.35

%

279.52

%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED

(Dollars in thousands)

Q2

Q1

Q4

Q3

Q2

Six Months Ended

June 30,

2025

2025

2024

2024

2024

2025

2024

Loan type

Commercial & industrial, including specialized lending

$

3,871

$

3,231

$

3,653

$

5,056

$

5,665

$

7,102

$

9,337

Multifamily

—

3,834

—

2,167

1,433

3,834

1,906

Commercial real estate owner occupied

411

16

339

4

—

427

22

Commercial real estate non-owner occupied

—

—

145

—

—

—

—

Construction

(3

)

(3

)

—

(3

)

(7

)

(6

)

(7

)

Residential

(4

)

—

(18

)

(21

)

(20

)

(4

)

(2

)

Installment

8,840

10,066

10,493

9,841

11,640

18,906

25,423

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

$

13,115

$

17,144

$

14,612

$

17,044

$

18,711

$

30,259

$

36,679

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED

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

The following tables present reconciliations of GAAP to non-GAAP measures disclosed within this document.

Core Earnings and Adjusted Core Earnings - Customers Bancorp

Six Months Ended

June 30,

Q2 2025

Q1 2025

Q4 2024

Q3 2024

Q2 2024

2025

2024

(Dollars in thousands, except per share data)

USD

Per

share

USD

Per

share

USD

Per

share

USD

Per

share

USD

Per

share

USD

Per

share

USD

Per

share

GAAP net income to common shareholders

$

55,846

$

1.73

$

9,523

$

0.29

$

23,266

$

0.71

$

42,937

$

1.31

$

54,300

$

1.66

$

65,369

$

2.02

$

100,226

$

3.06

Reconciling items (after tax):

Severance expense

—

—

—

—

1,198

0.04

540

0.02

1,928

0.06

—

—

1,928

0.06

Impairment loss on debt securities

—

—

39,875

1.23

—

—

—

—

—

—

39,875

1.23

—

—

Legal settlement

—

—

—

—

157

0.00

—

—

—

—

—

—

—

—

(Gains) losses on investment securities

1,388

0.04

(124

)

0.00

20,035

0.62

(322

)

(0.01

)

561

0.02

1,264

0.04

618

0.02

Derivative credit valuation adjustment

—

—

210

0.01

(306

)

(0.01

)

185

0.01

(44

)

0.00

210

0.01

125

0.00

FDIC special assessment

—

—

—

—

—

—

—

—

138

0.00

—

—

518

0.02

Unrealized (gain) on equity method investments

—

—

—

—

(292

)

(0.01

)

—

—

(8,316

)

(0.25

)

—

—

(8,316

)

(0.25

)

Loss on redemption of preferred stock

1,908

0.06

—

—

—

—

—

—

—

—

1,908

0.06

—

—

Unrealized (gain) loss on loans held for sale

(223

)

(0.01

)

518

0.02

110

0.00

498

0.02

—

—

295

0.01

—

—

Loan program termination fees

(772

)

(0.02

)

—

—

—

—

—

—

—

—

(772

)

(0.02

)

—

—

Core earnings

$

58,147

$

1.80

$

50,002

$

1.54

$

44,168

$

1.36

$

43,838

$

1.34

$

48,567

$

1.49

$

108,149

$

3.33

$

95,099

$

2.90

One-time non-interest expense items recorded in 2024 (after-tax):

Deposit servicing fees prior to 2024

—

—

—

—

—

—

—

—

—

—

—

—

5,405

0.16

FDIC premiums prior to 2024

—

—

—

—

—

—

—

—

—

—

—

—

3,200

0.10

Non-income taxes prior to 2024

—

—

—

—

—

—

(2,457

)

(0.07

)

—

—

—

—

—

—

Total one-time non-interest expense items

—

—

—

—

—

—

(2,457

)

(0.07

)

—

—

—

—

8,605

0.26

Adjusted core earnings (adjusted for one-time non-interest expense items)

$

58,147

$

1.80

$

50,002

$

1.54

$

44,168

$

1.36

$

41,381

$

1.26

$

48,567

$

1.49

$

108,149

$

3.33

$

103,704

$

3.16

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

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

(Dollars in thousands, except per share data)

Core Return on Average Assets and Adjusted Core Return on Average Assets - Customers Bancorp

Six Months Ended

June 30,

(Dollars in thousands, except per share data)

Q2 2025

Q1 2025

Q4 2024

Q3 2024

Q2 2024

2025

2024

GAAP net income

$

60,939

$

12,912

$

26,915

$

46,743

$

58,085

$

73,851

$

107,811

Reconciling items (after tax):

Severance expense

—

—

1,198

540

1,928

—

1,928

Impairment loss on debt securities

—

39,875

—

—

—

39,875

—

Legal settlement

—

—

157

—

—

—

—

(Gains) losses on investment securities

1,388

(124

)

20,035

(322

)

561

1,264

618

Derivative credit valuation adjustment

—

210

(306

)

185

(44

)

210

125

FDIC special assessment

—

—

—

—

138

—

518

Unrealized (gain) on equity method investments

—

—

(292

)

—

(8,316

)

—

(8,316

)

Unrealized (gain) loss on loans held for sale

(223

)

518

110

498

—

295

—

Loan program termination fees

(772

)

—

—

—

—

(772

)

—

Core net income

$

61,332

$

53,391

$

47,817

$

47,644

$

52,352

$

114,723

$

102,684

One-time non-interest expense items recorded in 2024 (after-tax):

Deposit servicing fees prior to 2024

—

—

—

—

—

—

5,405

FDIC premiums prior to 2024

—

—

—

—

—

—

3,200

Non-income taxes prior to 2024

—

—

—

(2,457

)

—

—

—

Total one-time non-interest expense items

—

—

—

(2,457

)

—

—

8,605

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

$

61,332

$

53,391

$

47,817

$

45,187

$

52,352

$

114,723

$

111,289

Average total assets

$

22,362,989

$

22,314,963

$

22,179,970

$

21,230,404

$

20,985,203

$

22,339,108

$

21,160,216

Core return on average assets

1.10

%

0.97

%

0.86

%

0.89

%

1.00

%

1.04

%

0.98

%

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

1.10

%

0.97

%

0.86

%

0.85

%

1.00

%

1.04

%

1.06

%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

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

(Dollars in thousands, except per share data)

Core Pre-Tax Pre-Provision Net Income and ROAA and Adjusted Core Pre-Tax Pre-Provision Net Income and ROAA - Customers Bancorp

Six Months Ended

June 30,

(Dollars in thousands, except per share data)

Q2 2025

Q1 2025

Q4 2024

Q3 2024

Q2 2024

2025

2024

GAAP net income

$

60,939

$

12,912

$

26,915

$

46,743

$

58,085

$

73,851

$

107,811

Reconciling items:

Income tax expense (benefit)

17,963

(1,024

)

8,946

(725

)

19,032

16,939

34,683

Provision (benefit) for credit losses

20,781

28,297

21,194

17,066

18,121

49,078

35,191

Provision (benefit) for credit losses on unfunded commitments

1,594

1,208

(664

)

642

1,594

2,802

2,024

Severance expense

—

—

1,595

659

2,560

—

2,560

Impairment loss on debt securities

—

51,319

—

—

—

51,319

—

Legal settlement

—

—

209

—

—

—

—

(Gains) losses on investment securities

1,797

(160

)

26,678

(394

)

744

1,637

819

Derivative credit valuation adjustment

—

270

(407

)

226

(58

)

270

164

FDIC special assessment

—

—

—

—

183

—

683

Unrealized (gain) on equity method investments

—

—

(389

)

—

(11,041

)

—

(11,041

)

Unrealized (gain) loss on loans held for sale

(289

)

667

147

607

—

378

—

Loan program termination fees

(1,000

)

—

—

—

—

(1,000

)

—

Core pre-tax pre-provision net income

$

101,785

$

93,489

$

84,224

$

64,824

$

89,220

$

195,274

$

172,894

One-time non-interest expense items recorded in 2024 (after-tax):

Deposit servicing fees prior to 2024

—

—

—

—

—

—

7,106

FDIC premiums prior to 2024

—

—

—

—

—

—

4,208

Non-income taxes prior to 2024

—

—

—

(2,997

)

—

—

—

Total one-time non-interest expense items

—

—

—

(2,997

)

—

—

11,314

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

$

101,785

$

93,489

$

84,224

$

61,827

$

89,220

$

195,274

$

184,208

Average total assets

$

22,362,989

$

22,314,963

$

22,179,970

$

21,230,404

$

20,985,203

$

22,339,108

$

21,160,216

Core pre-tax pre-provision ROAA

1.83

%

1.70

%

1.51

%

1.21

%

1.71

%

1.76

%

1.64

%

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

1.83

%

1.70

%

1.51

%

1.16

%

1.71

%

1.76

%

1.75

%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

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

(Dollars in thousands, except per share data)

Core Return on Average Common Equity and Adjusted Core Return on Average Common Equity - Customers Bancorp

Six Months Ended

June 30,

(Dollars in thousands, except per share data)

Q2 2025

Q1 2025

Q4 2024

Q3 2024

Q2 2024

2025

2024

GAAP net income to common shareholders

$

55,846

$

9,523

$

23,266

$

42,937

$

54,300

$

65,369

$

100,226

Reconciling items (after tax):

Severance expense

—

—

1,198

540

1,928

—

1,928

Impairment loss on debt securities

—

39,875

—

—

—

39,875

—

Legal settlement

—

—

157

—

—

—

—

(Gains) losses on investment securities

1,388

(124

)

20,035

(322

)

561

1,264

618

Derivative credit valuation adjustment

—

210

(306

)

185

(44

)

210

125

FDIC special assessment

—

—

—

—

138

—

518

Unrealized (gain) on equity method investments

—

—

(292

)

—

(8,316

)

—

(8,316

)

Loss on redemption of preferred stock

1,908

—

—

—

—

1,908

—

Unrealized (gain) loss on loans held for sale

(223

)

518

110

498

—

295

—

Loan program termination fees

(772

)

—

—

—

—

(772

)

—

Core earnings

$

58,147

$

50,002

$

44,168

$

43,838

$

48,567

$

108,149

$

95,099

One-time non-interest expense items recorded in 2024 (after-tax):

Deposit servicing fees prior to 2024

—

—

—

—

—

—

5,405

FDIC premiums prior to 2024

—

—

—

—

—

—

3,200

Non-income taxes prior to 2024

—

—

—

(2,457

)

—

—

—

Total one-time non-interest expense items

—

—

—

(2,457

)

—

—

8,605

Adjusted core earnings (adjusted for one-time non-interest expense items)

$

58,147

$

50,002

$

44,168

$

41,381

$

48,567

$

108,149

$

103,704

Average total common shareholders’ equity

$

1,751,037

$

1,730,910

$

1,683,838

$

1,636,242

$

1,576,595

$

1,741,029

$

1,552,903

Core return on average common equity

13.32

%

11.72

%

10.44

%

10.66

%

12.39

%

12.53

%

12.32

%

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

13.32

%

11.72

%

10.44

%

10.06

%

12.39

%

12.53

%

13.43

%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

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

(Dollars in thousands, except per share data)

Core Pre-Tax Pre-Provision ROCE and Adjusted Core Pre-Tax Pre-Provision ROCE - Customers Bancorp

Six Months Ended

June 30,

(Dollars in thousands, except per share data)

Q2 2025

Q1 2025

Q4 2024

Q3 2024

Q2 2024

2025

2024

GAAP net income to common shareholders

$

55,846

$

9,523

$

23,266

$

42,937

$

54,300

$

65,369

$

100,226

Reconciling items:

Income tax expense (benefit)

17,963

(1,024

)

8,946

(725

)

19,032

16,939

34,683

Provision (benefit) for credit losses

20,781

28,297

21,194

17,066

18,121

49,078

35,191

Provision (benefit) for credit losses on unfunded commitments

1,594

1,208

(664

)

642

1,594

2,802

2,024

Severance expense

—

—

1,595

659

2,560

—

2,560

Impairment loss on debt securities

—

51,319

—

—

—

51,319

—

Legal settlement

—

—

209

—

—

—

—

(Gains) losses on investment securities

1,797

(160

)

26,678

(394

)

744

1,637

819

Derivative credit valuation adjustment

—

270

(407

)

226

(58

)

270

164

FDIC special assessment

—

—

—

—

183

—

683

Unrealized (gain) on equity method investments

—

—

(389

)

—

(11,041

)

—

(11,041

)

Loss on redemption of preferred stock

1,908

—

—

—

—

1,908

—

Unrealized (gain) loss on loans held for sale

(289

)

667

147

607

—

378

—

Loan program termination fees

(1,000

)

—

—

—

—

(1,000

)

—

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

$

98,600

$

90,100

$

80,575

$

61,018

$

85,435

$

188,700

$

165,309

One-time non-interest expense items recorded in 2024 (after-tax):

Deposit servicing fees prior to 2024

—

—

—

—

—

—

7,106

FDIC premiums prior to 2024

—

—

—

—

—

—

4,208

Non-income taxes prior to 2024

—

—

—

(2,997

)

—

—

—

Total one-time non-interest expense items

—

—

—

(2,997

)

—

—

11,314

Adjusted core pre-tax pre-provision net income available to common shareholders

$

98,600

$

90,100

$

80,575

$

58,021

$

85,435

$

188,700

$

176,623

Average total common shareholders’ equity

$

1,751,037

$

1,730,910

$

1,683,838

$

1,636,242

$

1,576,595

$

1,741,029

$

1,552,903

Core pre-tax pre-provision ROCE

22.59

%

21.11

%

19.04

%

14.84

%

21.79

%

21.86

%

21.41

%

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

22.59

%

21.11

%

19.04

%

14.11

%

21.79

%

21.86

%

22.87

%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

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

(Dollars in thousands, except per share data)

Core Efficiency Ratio and Adjusted Core Efficiency Ratio - Customers Bancorp

Six Months Ended

June 30,

(Dollars in thousands, except per share data)

Q2 2025

Q1 2025

Q4 2024

Q3 2024

Q2 2024

2025

2024

GAAP net interest income

$

176,703

$

167,446

$

167,821

$

158,545

$

167,653

$

344,149

$

328,038

GAAP non-interest income (loss)

$

29,606

$

(24,490

)

$

(391

)

$

8,557

$

31,037

$

5,116

$

52,268

(Gains) losses on investment securities

1,797

(160

)

26,678

(394

)

744

1,637

819

Derivative credit valuation adjustment

—

270

(407

)

226

(58

)

270

164

Unrealized (gain) on equity method investments

—

—

(389

)

—

(11,041

)

—

(11,041

)

Unrealized (gain) loss on loans held for sale

(289

)

667

147

607

—

378

—

Impairment loss on debt securities

—

51,319

—

—

—

51,319

—

Loan program termination fees

(1,000

)

—

—

—

—

(1,000

)

—

Core non-interest income

30,114

27,606

25,638

8,996

20,682

57,720

42,210

Core revenue

$

206,817

$

195,052

$

193,459

$

167,541

$

188,335

$

401,869

$

370,248

GAAP non-interest expense

$

106,626

$

102,771

$

110,375

$

104,018

$

103,452

$

209,397

$

202,621

Severance expense

—

—

(1,595

)

(659

)

(2,560

)

—

(2,560

)

FDIC special assessment

—

—

—

—

(183

)

—

(683

)

Legal settlement

—

—

(209

)

—

—

—

—

Core non-interest expense

$

106,626

$

102,771

$

108,571

$

103,359

$

100,709

$

209,397

$

199,378

One-time non-interest expense items recorded in 2024:

Deposit servicing fees prior to 2024

—

—

—

—

—

—

(7,106

)

FDIC premiums prior to 2024

—

—

—

—

—

—

(4,208

)

Non-income taxes prior to 2024

—

—

—

2,997

—

—

—

Total one-time non-interest expense items

—

—

—

2,997

—

—

(11,314

)

Adjusted core non-interest expense

$

106,626

$

102,771

$

108,571

$

106,356

$

100,709

$

209,397

$

188,064

Core efficiency ratio(1)

51.56

%

52.69

%

56.12

%

61.69

%

53.47

%

52.11

%

53.85

%

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

51.56

%

52.69

%

56.12

%

63.48

%

53.47

%

52.11

%

50.79

%

(1) Core efficiency ratio calculated as core non-interest expense divided by core revenue.

(2) Adjusted core efficiency ratio calculated as adjusted core non-interest expense divided by core revenue.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

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

(Dollars in thousands, except per share data)

Tangible Common Equity to Tangible Assets - Customers Bancorp

(Dollars in thousands, except per share data)

Q2 2025

Q1 2025

Q4 2024

Q3 2024

Q2 2024

GAAP total shareholders’ equity

$

1,863,558

$

1,864,560

$

1,836,683

$

1,801,180

$

1,746,865

Reconciling items:

Preferred stock

(82,201

)

(137,794

)

(137,794

)

(137,794

)

(137,794

)

Goodwill and other intangibles

(3,629

)

(3,629

)

(3,629

)

(3,629

)

(3,629

)

Tangible common equity

$

1,777,728

$

1,723,137

$

1,695,260

$

1,659,757

$

1,605,442

GAAP total assets

$

22,550,800

$

22,423,044

$

22,308,241

$

21,456,082

$

20,942,975

Reconciling items:

Goodwill and other intangibles

(3,629

)

(3,629

)

(3,629

)

(3,629

)

(3,629

)

Tangible assets

$

22,547,171

$

22,419,415

$

22,304,612

$

21,452,453

$

20,939,346

Tangible common equity to tangible assets

7.9

%

7.7

%

7.6

%

7.7

%

7.7

%

Tangible Book Value per Common Share - Customers Bancorp

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

Q2 2025

Q1 2025

Q4 2024

Q3 2024

Q2 2024

GAAP total shareholders’ equity

$

1,863,558

$

1,864,560

$

1,836,683

$

1,801,180

$

1,746,865

Reconciling Items:

Preferred stock

(82,201

)

(137,794

)

(137,794

)

(137,794

)

(137,794

)

Goodwill and other intangibles

(3,629

)

(3,629

)

(3,629

)

(3,629

)

(3,629

)

Tangible common equity

$

1,777,728

$

1,723,137

$

1,695,260

$

1,659,757

$

1,605,442

Common shares outstanding

31,606,934

31,479,132

31,346,507

31,342,107

31,667,655

Tangible book value per common share

$

56.24

$

54.74

$

54.08

$

52.96

$

50.70

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

Source: Customers Bancorp, Inc.