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Wed. 27 Apr 2022, 5:15pm ET Benzinga Press Releases

Q1 2022 Net Income of $74.9 million, or $2.18 Per Diluted Share, Up 126% Over Q1 2021

Q1 2022 ROAA of 1.63% and ROCE of 24.3%

Q1 2022 Loan Growth of $1.1 billion (Excluding PPP Loans and Loans to Mortgage Companies), Up 12% Over Q4 2021 and 33% Year-Over-Year

Deposit Growth of $3.9 billion, Up 32% Year-Over-Year

  • Q1 2022 net income available to common shareholders was $74.9 million, or $2.18 per diluted share, up 126% over Q1 2021.
  • Q1 2022 core earnings (a non-GAAP measure) were $75.2 million, or $2.19 per diluted share, up 7% over Q1 2021.
  • Q1 2022 core earnings excluding Paycheck Protection Program ("PPP") (a non-GAAP measure) were $50.5 million, or $1.47 per diluted share, up 12% over Q1 2021.
  • Q1 2022 ROAA was 1.63% and Core ROAA (a non-GAAP measure) was 1.63%. Q1 2021 ROAA was 0.80% and Core ROAA (a non-GAAP measure) was 1.61%.
  • Q1 2022 ROCE was 24.3% and Core ROCE (a non-GAAP measure) was 24.4%. Q1 2021 ROCE was 14.7% and Core ROCE (a non-GAAP measure) was 31.0%.
  • Adjusted pre-tax pre-provision net income (a non-GAAP measure) for Q1 2022 was $112.4 million, an increase of 29% over Q1 2021. Q1 2022 adjusted pre-tax pre-provision ROAA (a non-GAAP measure) was 2.38% compared to 1.90% for Q1 2021.
  • Q1 2022 commercial and industrial (C&I) loan growth of $574.8 million (up 17%), multifamily loan growth of $218.7 million (up 15%), and consumer loan growth of $269.5 million (up 13%) over Q4 2021.
  • Q1 2022 net interest margin (a non-GAAP measure) increased 60 basis points from Q1 2021 to 3.60%. Q1 2022 net interest margin, excluding the impact of PPP loans (a non-GAAP measure) increased 33 basis points from Q1 2021 to 3.32%.
  • Total deposits increased $3.9 billion, or 32% year-over-year, which included a $4.3 billion, or 72%, increase in demand deposits. This increase included CBIT-related deposits with a balance of $1.8 billion at March 31, 2022. This balance has increased to approximately $2.3 billion at April 15, 2022 and includes 74 new customers onboarded in Q1 2022. The total cost of deposits dropped 20 basis points from the year-ago quarter.
  • Q1 2022 efficiency ratio was 39.42% compared to 48.89% for Q1 2021. Q1 2022 core efficiency ratio was 39.62% compared to 41.13% in Q1 2021 (non-GAAP measures).
  • Q1 2022 provision for credit losses on loans and leases was $15.3 million compared to $13.9 million in Q4 2021. At March 31, 2022, the coverage of credit loss reserves for loans and leases held for investment, excluding PPP loans (a non-GAAP measure), was 1.44% compared to 1.53% at December 31, 2021.
  • Non-performing assets were $43.9 million, or 0.23% of total assets, at March 31, 2022 compared to $49.3 million, or 0.26% of total assets, at March 31, 2021. Allowance for credit losses equaled 333% of non-performing loans at March 31, 2022, compared to 264% at March 31, 2021.
  • Well positioned for strong core sustainable 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 well over $6.00 in 2023.

Customers Bancorp, Inc. (NYSE:CUBI), the parent company of Customers Bank (collectively "Customers" or "CUBI"), today reported first quarter 2022 ("Q1 2022") net income to common shareholders of $74.9 million, or $2.18 per diluted share, up from first quarter 2021 ("Q1 2021") net income to common shareholders of $33.2 million, or $1.01 per diluted share. Q1 2022 core earnings were $75.2 million, or $2.19 per diluted share, up from Q1 2021 core earnings of $70.3 million, or $2.14 per diluted share (non-GAAP measures). Q1 2022 core earnings (excluding PPP) were $50.5 million, or $1.47 per diluted share, up from Q1 2021 core earnings (excluding PPP) of $45.2 million, or $1.38 per diluted share (non-GAAP measures). Adjusted pre-tax pre-provision net income was $112.4 million for Q1 2022 compared to $86.8 million for Q1 2021 (non-GAAP measures). Net interest margin, tax equivalent ("NIM") was 3.60% for Q1 2022, up from 3.00% for Q1 2021 (non-GAAP measures). Excluding PPP, NIM was 3.32% for Q1 2022 up from 2.99% for Q1 2021 (non-GAAP measures).

"We are extremely pleased with our first quarter results and are excited that 2022 is off to a great start," remarked Customers Bancorp Chairman and CEO, Jay Sidhu. "In a quarter impacted by geopolitical conflict, rising interest rates, yield curve inversion, inflationary pressures, and the ongoing effects of the pandemic, we continue to responsibly deliver remarkable organic loan growth. Our core loans increased $559 million in Q1 2022, up 5% from Q4 2021 (20% on an annualized basis), and well above our $500 million average quarterly target, despite lower balances in loans to mortgage companies of $532 million given yield-curve related and seasonal declines. Putting PPP aside, we increased total revenues in the core bank, reduced expenses, improved our efficiency ratio and continue to deliver positive operating leverage. Asset quality remains exceptional and credit reserves are strong. Continuing the momentum from record 2021 performance and strong first quarter results, our loan and deposit pipelines remain at record highs, as the 2021 market expansion and new verticals continue to perform as or better than expected, a testament to our customer centric business model supported by best-in-class service and technology. This leaves us very well positioned to support future growth. We remain very excited and optimistic about our future," Mr. Jay Sidhu continued.

Full Launch of Customers Bank Instant Token (CBITTM)

"We were thrilled to report the full launch of CBIT on the TassatPayTM payments platform in January 2022, following a successful soft launch in Q4 2021, and are very pleased with our progress to date. In Q1 2022, we onboarded 74 new CBIT-related customers to the Digital Bank, beating our internal target of at least 25 new customers. We expect digital asset-related deposits to grow significantly 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 are among the best in the country," commented Mr. Sam Sidhu, President and CEO of Customers Bank.

At March 31, 2022, $1.8 billion in core low-to-no cost demand deposits have been attracted to the Bank through this system. This balance has increased to approximately $2.3 billion at April 15, 2022.

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 Q1 2022, we recognized $30 million of these fees in earnings, bringing total fees recognized to date to $292 million, resulting in approximately $58 million to be recognized throughout 2022 and 2023. "As we've stated previously, it is difficult to predict the timing of PPP forgiveness. After a slow start, forgiveness levels picked up late in the quarter, resulting in higher deferred fee recognition in Q1 2022 than expected. 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

Commercial and industrial loans and leases increased $1.8 billion, or 81.1% year-over-year, to $3.9 billion, consumer installment loans increased $492.7 million, or 35.1% year-over-year, to $1.9 billion, residential loans increased $173.8 million, or 58.8% year-over-year, to $469.4 million, commercial real estate owner occupied loans increased $111.8 million, or 18.9% year-over-year, to $701.9 million and multi-family loans increased $45.5 million, or 2.7% year-over-year, to $1.7 billion. These increases in loans and leases were partially offset by a decrease in commercial real estate non-owner occupied loans of $54.5 million to $1.1 billion.

Total loans and leases, including PPP loans, decreased $2.1 billion, or 13.0%, to $14.1 billion at March 31, 2022 compared to the year-ago period. As expected, commercial loans to mortgage companies declined $1.6 billion to $1.8 billion compared to the year-ago period. PPP loans declined $3.0 billion to $2.2 billion at March 31, 2022 compared to the year-ago period, primarily driven by $6.0 billion in forgiveness, repayments and associated net deferred fees from the latest and earlier rounds of PPP loans, net of $3.0 billion in originations and purchases in the latest round. Excluding PPP loans and commercial loans to mortgage companies, total loans and leases increased $2.5 billion, or 33.5%, as the loan mix continued to improve year-over-year.

"Looking ahead, we see continued responsible growth primarily in core C&I, including specialty finance lines of business, multi-family and residential loans offsetting the continued yield curve related decreases in loans to mortgage companies. The increase in core C&I loans, primarily driven by our specialty finance lines of business, is expected to dampen the seasonal volatility created by our loans to mortgage companies in future periods," stated Mr. Jay Sidhu.

Total deposits increased $3.9 billion, or 31.6%, to $16.4 billion at March 31, 2022 compared to the year-ago period. Total demand deposits increased $4.3 billion, or 72.2%, to $10.2 billion. Money market deposits increased $574.6 million, or 13.0%, to $5.0 billion. These increases were offset, in part, by decreases in savings deposits of $681.1 million, or 45.9%, to $0.8 billion and time deposits of $219.7 million, or 33.0%, to $446.2 million as we continue our efforts to run-off higher cost rate sensitive deposits. The total cost of deposits declined by 20 basis points to 0.33% in Q1 2022 from 0.53% in the year-ago quarter. "Our current spot cost of deposits was approximately 32 basis points at March 31, 2022, a dramatic improvement over the prior year. Given the transformational improvements in the quality of our deposit franchise over the past year, we feel very well positioned against future interest rate hikes from a deposit repricing standpoint," stated Mr. Jay Sidhu.

Other borrowings increased $99.1 million to $223.2 million at March 31, 2022 compared to the year-ago period from the issuance of our 2.875% fixed-to-floating rate senior notes, the proceeds of which were used to redeem all outstanding shares of our Series C and Series D Preferred Stock in Q3 2021.

Very Strong Growth in Tangible Common Equity and Tangible Book Value Per Share

Customers experienced significant improvements in regulatory capital ratios in Q1 2022 as compared to a year ago. Customers Bancorp's tangible common equity (a non-GAAP measure) increased by $268.6 million to $1.2 billion at March 31, 2022 from $967.3 million at March 31, 2021, and the tangible book value per common share (a non-GAAP measure) increased to $37.50 at March 31, 2022 from $30.01 at March 31, 2021, an increase of 25.0%. 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 (a non-GAAP measure), were 12.9% and 7.3%, respectively, at March 31, 2022.

Loan Portfolio Management During the COVID-19 Crisis

Over the last decade, we have developed a suite of commercial and retail 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.

Strong commercial loan portfolio with very low concentration in COVID-19 impacted industries and CRE

  • All commercial loans previously on deferments became current by December 31, 2021 and remain current at March 31, 2022. Commercial deferments peaked at about $1.2 billion in July 2020.
  • Exposure to industry segments and CRE significantly impacted by COVID-19 initially is not substantial.

Consumer installment, mortgage and home equity loan portfolios continue to perform well

  • Total consumer-related deferments declined to $3.3 million at March 31, 2022, down from $6.1 million at December 31, 2021.
  • Total consumer installment loans were approximately 10% of total assets at March 31, 2022 and were supported by an allowance for credit losses of $107.9 million.
  • At March 31, 2022, our consumer installment portfolio had the following: average FICO score of 730, average debt-to-income of 16.5% and average borrower income of $101 thousand.

Key Profitability Trends

Net Interest Income

Net interest income totaled $164.7 million in Q1 2022, a decrease of $29.0 million from Q4 2021, primarily due to lower PPP interest income of $45.2 million resulting from reduced recognition of deferred fees of $41.8 million driven by lower loan forgiveness in Q1 2022. This decrease was offset in part by increased net interest income earned by the core bank, including increased interest income on investment securities and core loans (a non-GAAP measure) of $5.1 million and $4.4 million, respectively, mostly due to higher average balances, dividend income of $5.2 million primarily resulting from an equity investment distribution, and lower expenses paid on deposits of $1.7 million resulting from continuing efforts to run-off higher cost rate sensitive deposits. Excluding PPP loans, average interest-earning assets increased $1.3 billion. Interest-earning asset growth was driven by increases in investment securities, commercial and industrial loans, multi-family loans, consumer installment loans and residential loans, offset in part by decreases in interest earning deposits and commercial loans to mortgage companies. Compared to Q4 2021, total loan yields decreased 81 basis points to 4.67% primarily resulting from a lower average balance of PPP loans at lower yields in Q1 2022 driven by PPP loan forgiveness and lower deferred fee recognition. Excluding PPP loans, the Q1 2022 total loan yield was relatively unchanged from Q4 2021. Total deposits and borrowing costs decreased by 3 basis points to 0.43% primarily due to growth in non-interest-bearing deposits and a 4 basis point decrease in the cost of interest-bearing deposits to 0.46%. The Q1 2022 NIM (excluding PPP) (a non-GAAP measure) of 3.32% included a benefit of 13 basis points from the dividend income received in Q1 2022 of $5.2 million.

Provision for Credit Losses

The provision for credit losses on loans and leases in Q1 2022 was $15.3 million, compared to $13.9 million in Q4 2021. The provision in Q1 2022 was primarily to support the continued growth in CB Direct consumer installment loan originations, as well as growth in residential and multi-family loans. The allowance for credit losses on loans and leases represented 1.44% of total loans and leases receivable, excluding PPP loans (a non-GAAP measure) at March 31, 2022, compared to 1.53% at December 31, 2021 and 1.71% at March 31, 2021. Non-performing loans at March 31, 2022 were 0.31% of total loans and leases, compared to 0.30% at March 31, 2021. The provision for credit losses for available-for-sale investment securities in Q1 2022 was $0.7 million.

Non-Interest Income

Non-interest income totaled $21.2 million for Q1 2022, an increase of $4.2 million compared to Q4 2021. The increase was primarily due to $6.4 million of death benefits from bank-owned life insurance policies, offset in part by an increase in losses realized from the sale of investment securities of $1.0 million, lower gains realized from the sale of SBA loans of $0.3 million, and no consumer loan sales in Q1 2022 compared to gains of $0.7 million realized from the sale of consumer loans in Q4 2021.

Non-Interest Expense

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 $73.8 million in Q1 2022, a decrease of $7.7 million compared to Q4 2021. The decrease was primarily attributable to lower salaries and employee benefits of $3.3 million mostly due to higher incentives recorded in Q4 2021 resulting from record 2021 financial performance, $2.0 million in lower loan servicing costs primarily due to lower PPP loan forgiveness and lower occupancy costs of $1.3 million primarily associated with the relocation of the Bank headquarters and a $1.3 million decrease in charitable contributions and corporate sponsorships. These decreases were offset in part by a $1.4 million increase in technology, processing and deposit servicing-related expenses.

Taxes

Income tax expense from continuing operations increased by $6.3 million to $19.3 million in Q1 2022 from $13.0 million in Q4 2021 primarily due to a decrease in excess tax benefits from stock option exercises recorded in Q4 2021 and a reduction in investment tax credits, partially offset by a reduction in pre-tax income. The effective tax rate from continuing operations for Q1 2022 was 20%. Customers expects the full-year 2022 effective tax rate from continuing operations to be approximately 21% to 23%.

BM Technologies, Inc. (BMTX)

We previously entered into a Deposit Servicing Agreement with BMTX, which was profitable at the time as we were in the early stage of building out our commercial and digital deposit franchise. However, with the advent of CBIT, which went into full launch in January 2022, we now have a low-to-no cost core deposit aggregation strategy that is expected to be far more profitable. We are preparing for the expiration of the Deposit Servicing Agreement scheduled to expire on December 31, 2022, which cost us approximately $60 million ($48 million after taxes) in 2021 and will not be renewed. The expiration of the Deposit Servicing Agreement is expected to be accretive to our 2023 earnings by $60 million (pre-tax). At March 31, 2022, $2.2 billion of deposits were serviced by BMTX, which we expect to leave the Bank by December 31, 2022.

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 significant 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 at or below 40% by early 2023. Customers Bancorp stock at the close of business on April 22, 2022 was trading at $42.84, less than 7 times analyst estimated EPS for 2023 and only 1.1 times tangible book value at March 31, 2022. We continue to expect to meet or beat projections of our core earnings (excluding PPP) between $4.75 - $5.00 in 2022 and well over $6.00 in 2023, two to three years ahead of our previous guidance of $6.00 by 2025/2026," concluded Mr. Jay Sidhu.

Webcast

Date: Thursday, April 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 1st Quarter Earnings Webcast.

You may submit questions in advance of the live webcast by emailing our Communications Director, David Patti at dpatti@customersbank.com; questions may also be asked during the webcast through the webcast application.

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

Institutional Background

Customers Bancorp, Inc. (NYSE:CUBI) is 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 $19.2 billion in assets at March 31, 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; 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.

Q1 2022 Overview

The following table presents a summary of key earnings and performance metrics for the quarter ended March 31, 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)

Q1

Q4

Q3

Q2

Q1

 

2022

2021

2021

2021

2021

 

 

 

 

 

 

 

 

 

GAAP Profitability Metrics:

 

Net income available to common shareholders

(from continuing and discontinued operations)

$

74,896

$

98,647

$

110,241

$

58,042

$

33,204

 

Per share amounts:

 

 

 

 

 

 

 

Earnings per share - basic

$

2.27

$

3.02

$

3.40

$

1.80

$

1.04

 

 

Earnings per share - diluted

$

2.18

$

2.87

$

3.25

$

1.72

$

1.01

 

 

Book value per common share (1)

$

37.61

$

37.32

$

35.24

$

31.94

$

30.13

 

 

CUBI stock price (1)

$

52.14

$

65.37

$

43.02

$

38.99

$

31.82

 

 

CUBI stock price as % of book value (1)

 

139 %

 

175 %

 

122 %

 

122 %

 

106 %

 

Average shares outstanding - basic

 

32,957,033

 

32,625,960

 

32,449,853

 

32,279,625

 

31,883,946

 

Average shares outstanding - diluted

 

34,327,065

 

34,320,327

 

33,868,553

 

33,741,468

 

32,841,711

 

Shares outstanding (1)

 

32,957,847

 

32,913,267

 

32,537,976

 

32,353,256

 

32,238,762

 

Return on average assets ("ROAA")

 

1.63 %

 

2.08 %

 

2.33 %

 

1.27 %

 

0.80 %

 

Return on average common equity ("ROCE")

 

24.26 %

 

33.18 %

 

40.82 %

 

23.22 %

 

14.66 %

 

Efficiency ratio

 

39.42 %

 

38.70 %

 

33.42 %

 

46.59 %

 

48.89 %

 

Non-GAAP Profitability Metrics (2):

 

 

 

 

 

 

Core earnings

$

75,190

$

100,095

$

113,876

$

59,303

$

70,308

 

Adjusted pre-tax pre-provision net income

$

112,363

$

129,335

$

167,215

$

86,467

$

86,769

 

Per share amounts:

 

 

 

 

 

 

 

Core earnings per share - diluted

$

2.19

$

2.92

$

3.36

$

1.76

$

2.14

 

 

Tangible book value per common share (1)

$

37.50

$

37.21

$

35.12

$

31.82

$

30.01

 

 

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

 

139 %

 

176 %

 

122 %

 

123 %

 

106 %

 

Core ROAA

 

1.63 %

 

2.11 %

 

2.35 %

 

1.30 %

 

1.61 %

 

Core ROCE

 

24.36 %

 

33.67 %

 

42.16 %

 

23.72 %

 

31.03 %

 

Adjusted ROAA - pre-tax and pre-provision

 

2.38 %

 

2.67 %

 

3.36 %

 

1.80 %

 

1.90 %

 

Adjusted ROCE - pre-tax and pre-provision

 

35.79 %

 

42.82 %

 

60.81 %

 

33.27 %

 

36.80 %

 

Net interest margin, tax equivalent

 

3.60 %

 

4.14 %

 

4.59 %

 

2.98 %

 

3.00 %

 

Net interest margin, tax equivalent, excluding PPP loans

 

3.32 %

 

3.12 %

 

3.24 %

 

3.30 %

 

2.99 %

 

Core efficiency ratio

 

39.62 %

 

38.73 %

 

30.36 %

 

44.33 %

 

41.13 %

 

Asset Quality:

 

 

 

 

 

 

Net charge-offs

$

7,226

$

7,582

$

7,104

$

6,591

$

12,521

 

Annualized net charge-offs to average total loans and leases

 

0.21 %

 

0.21 %

 

0.17 %

 

0.16 %

 

0.33 %

 

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

 

0.31 %

 

0.34 %

 

0.34 %

 

0.27 %

 

0.30 %

 

Reserves to NPLs (1)

 

333.15 %

 

277.72 %

 

252.68 %

 

269.96 %

 

264.21 %

 

Non-performing assets ("NPAs") to total assets

 

0.23 %

 

0.25 %

 

0.27 %

 

0.24 %

 

0.26 %

 

Customers Bank Capital Ratios (3):

 

 

 

 

 

 

Common equity Tier 1 capital to risk-weighted assets

 

11.60 %

 

11.83 %

 

12.77 %

 

12.40 %

 

11.75 %

 

Tier 1 capital to risk-weighted assets

 

11.60 %

 

11.83 %

 

12.77 %

 

12.40 %

 

11.75 %

 

Total capital to risk-weighted assets

 

13.03 %

 

13.11 %

 

14.16 %

 

13.77 %

 

13.11 %

 

Tier 1 capital to average assets (leverage ratio)

 

8.21 %

 

7.93 %

 

8.66 %

 

9.07 %

 

9.35 %

 

 

(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 Q1 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 March 31, 2022, our regulatory capital ratios reflected 75%, or $46.2 million, benefit associated with the CECL transition provisions.

 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

Q1

 

Q4

 

Q3

 

Q2

 

Q1

 

2022

 

2021

 

2021

 

2021

 

2021

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

$

157,175

 

$

198,000

 

$

233,097

 

$

153,608

 

$

152,117

Investment securities

 

20,295

 

 

15,202

 

 

8,905

 

 

8,327

 

 

7,979

Other

 

6,006

 

 

835

 

 

849

 

 

946

 

 

1,019

Total interest income

 

183,476

 

 

214,037

 

 

242,851

 

 

162,881

 

 

161,115

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

13,712

 

 

15,415

 

 

15,915

 

 

15,653

 

 

15,658

FHLB advances

 

 

 

51

 

 

5

 

 

963

 

 

5,192

Subordinated debt

 

2,689

 

 

2,688

 

 

2,689

 

 

2,689

 

 

2,689

FRB PPP liquidity facility, federal funds purchased and other borrowings

 

2,376

 

 

2,189

 

 

4,350

 

 

4,819

 

 

4,845

Total interest expense

 

18,777

 

 

20,343

 

 

22,959

 

 

24,124

 

 

28,384

Net interest income

 

164,699

 

 

193,694

 

 

219,892

 

 

138,757

 

 

132,731

Provision (benefit) for credit losses

 

15,997

 

 

13,890

 

 

13,164

 

 

3,291

 

 

(2,919)

Net interest income after provision (benefit) for credit losses

 

148,702

 

 

179,804

 

 

206,728

 

 

135,466

 

 

135,650

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Interchange and card revenue

 

76

 

 

84

 

 

83

 

 

84

 

 

85

Deposit fees

 

940

 

 

1,026

 

 

994

 

 

891

 

 

863

Commercial lease income

 

5,895

 

 

5,378

 

 

5,213

 

 

5,311

 

 

5,205

Bank-owned life insurance

 

8,326

 

 

1,984

 

 

1,988

 

 

2,765

 

 

1,679

Mortgage warehouse transactional fees

 

2,015

 

 

2,262

 

 

3,100

 

 

3,265

 

 

4,247

Gain (loss) on sale of SBA and other loans

 

1,507

 

 

2,493

 

 

5,359

 

 

1,900

 

 

1,575

Loan fees

 

2,545

 

 

2,513

 

 

1,909

 

 

1,670

 

 

1,436

Mortgage banking income (loss)

 

481

 

 

262

 

 

425

 

 

386

 

 

463

Gain (loss) on sale of investment securities

 

(1,063)

 

 

(49)

 

 

6,063

 

 

1,812

 

 

23,566

Unrealized gain (loss) on investment securities

 

(276)

 

 

 

 

 

 

1,746

 

 

974

Loss on sale of foreign subsidiaries

 

 

 

 

 

 

 

(2,840)

 

 

Unrealized gain (loss) on derivatives

 

964

 

 

586

 

 

524

 

 

(439)

 

 

2,537

Loss on cash flow hedge derivative terminations

 

 

 

 

 

 

 

 

 

(24,467)

Other

 

(212)

 

 

452

 

 

(72)

 

 

271

 

 

305

Total non-interest income

 

21,198

 

 

16,991

 

 

25,586

 

 

16,822

 

 

18,468

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

26,607

 

 

29,940

 

 

26,268

 

 

28,023

 

 

23,971

Technology, communication and bank operations

 

24,068

 

 

22,657

 

 

21,281

 

 

19,618

 

 

19,988

Professional services

 

6,956

 

 

7,058

 

 

6,871

 

 

6,882

 

 

5,877

Occupancy

 

3,050

 

 

4,336

 

 

2,704

 

 

2,482

 

 

2,621

Commercial lease depreciation

 

4,942

 

 

4,625

 

 

4,493

 

 

4,415

 

 

4,291

FDIC assessments, non-income taxes and regulatory fees

 

2,383

 

 

2,427

 

 

2,313

 

 

2,602

 

 

2,719

Loan servicing

 

2,371

 

 

4,361

 

 

4,265

 

 

1,700

 

 

437

Merger and acquisition related expenses

 

 

 

 

 

 

 

 

 

418

Loan workout

 

(38)

 

 

226

 

 

198

 

 

102

 

 

(261)

Advertising and promotion

 

315

 

 

344

 

 

302

 

 

313

 

 

561

Deposit relationship adjustment fees

 

 

 

 

 

6,216

 

 

 

 

Other

 

3,153

 

 

5,574

 

 

5,098

 

 

4,686

 

 

1,305

Total non-interest expense

 

73,807

 

 

81,548

 

 

80,009

 

 

70,823

 

 

61,927

Income before income tax expense

 

96,093

 

 

115,247

 

 

152,305

 

 

81,465

 

 

92,191

Income tax expense

 

19,332

 

 

12,993

 

 

36,263

 

 

20,124

 

 

17,560

Net income from continuing operations

$

76,761

 

$

102,254

 

$

116,042

 

$

61,341

 

$

74,631

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q4

 

Q3

 

Q2

 

Q1

 

2022

 

2021

 

2021

 

2021

 

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

 

76,761

 

 

100,669

 

 

116,042

 

 

61,341

 

 

36,595

Preferred stock dividends

 

1,865

 

 

2,022

 

 

2,981

 

 

3,299

 

 

3,391

Loss on redemption of preferred stock

 

 

 

 

 

2,820

 

 

 

 

Net income available to common shareholders

$

74,896

 

$

98,647

 

$

110,241

 

$

58,042

 

$

33,204

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share from continuing operations

$

2.27

 

$

3.07

 

$

3.40

 

$

1.80

 

$

2.23

Basic earnings per common share

 

2.27

 

 

3.02

 

 

3.40

 

 

1.80

 

 

1.04

Diluted earnings per common share from continuing operations

 

2.18

 

 

2.92

 

 

3.25

 

 

1.72

 

 

2.17

Diluted earnings per common share

 

2.18

 

 

2.87

 

 

3.25

 

 

1.72

 

 

1.01

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET - UNAUDITED

(Dollars in thousands)

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

2022

 

 

2021

 

 

2021

 

 

2021

 

 

2021

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

55,515

 

$

35,238

 

$

51,169

 

$

36,837

 

$

3,123

Interest earning deposits

 

219,085

 

 

482,794

 

 

1,000,885

 

 

393,663

 

 

512,241

Cash and cash equivalents

 

274,600

 

 

518,032

 

 

1,052,054

 

 

430,500

 

 

515,364

Investment securities, at fair value

 

4,169,853

 

 

3,817,150

 

 

1,866,697

 

 

1,526,792

 

 

1,441,904

Loans held for sale

 

3,003

 

 

16,254

 

 

29,957

 

 

34,540

 

 

46,106

Loans receivable, mortgage warehouse, at fair value

 

1,755,758

 

 

2,284,325

 

 

2,557,624

 

 

2,855,284

 

 

3,407,622

Loans receivable, PPP

 

2,195,902

 

 

3,250,008

 

 

4,957,357

 

 

6,305,056

 

 

5,178,089

Loans and leases receivable

 

10,118,855

 

 

9,018,298

 

 

7,970,599

 

 

7,772,142

 

 

7,536,489

Allowance for credit losses on loans and leases

 

(145,847)

 

 

(137,804)

 

 

(131,496)

 

 

(125,436)

 

 

(128,736)

Total loans and leases receivable, net of

allowance for credit losses on loans and leases

 

13,924,668

 

 

14,414,827

 

 

15,354,084

 

 

16,807,046

 

 

15,993,464

FHLB, Federal Reserve Bank, and other restricted stock

 

54,553

 

 

64,584

 

 

57,184

 

 

39,895

 

 

69,420

Accrued interest receivable

 

94,669

 

 

92,239

 

 

93,514

 

 

90,009

 

 

83,186

Bank premises and equipment, net

 

8,233

 

 

8,890

 

 

9,944

 

 

10,391

 

 

10,943

Bank-owned life insurance

 

332,239

 

 

333,705

 

 

331,423

 

 

329,421

 

 

281,923

Goodwill and other intangibles

 

3,678

 

 

3,736

 

 

3,794

 

 

3,853

 

 

3,911

Other assets

 

298,212

 

 

305,611

 

 

310,271

 

 

362,661

 

 

371,439

Total assets

$

19,163,708

 

$

19,575,028

 

$

19,108,922

 

$

19,635,108

 

$

18,817,660

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Demand, non-interest bearing deposits

$

4,594,428

 

$

4,459,790

 

$

4,954,331

 

$

2,699,869

 

$

2,687,628

Interest bearing deposits

 

11,821,132

 

 

12,318,134

 

 

12,016,694

 

 

11,174,070

 

 

9,784,812

Total deposits

 

16,415,560

 

 

16,777,924

 

 

16,971,025

 

 

13,873,939

 

 

12,472,440

Federal funds purchased

 

700,000

 

 

75,000

 

 

 

 

 

 

365,000

FHLB advances

 

 

 

700,000

 

 

 

 

 

 

850,000

Other borrowings

 

223,230

 

 

223,086

 

 

223,151

 

 

124,240

 

 

124,138

Subordinated debt

 

181,742

 

 

181,673

 

 

181,603

 

 

181,534

 

 

181,464

FRB PPP liquidity facility

 

 

 

 

 

 

 

3,865,865

 

 

3,284,156

Accrued interest payable and other liabilities

 

265,770

 

 

251,128

 

 

448,844

 

 

338,801

 

 

351,741

Total liabilities

 

17,786,302

 

 

18,208,811

 

 

17,824,623

 

 

18,384,379

 

 

17,628,939

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

137,794

 

 

137,794

 

 

137,794

 

 

217,471

 

 

217,471

Common stock

 

34,882

 

 

34,722

 

 

33,818

 

 

33,634

 

 

33,519

Additional paid in capital

 

542,402

 

 

542,391

 

 

525,894

 

 

519,294

 

 

515,318

Retained earnings

 

780,628

 

 

705,732

 

 

607,085

 

 

496,844

 

 

438,802

Accumulated other comprehensive income (loss), net

 

(62,548)

 

 

(4,980)

 

 

1,488

 

 

5,266

 

 

5,391

Treasury stock, at cost

 

(55,752)

 

 

(49,442)

 

 

(21,780)

 

 

(21,780)

 

 

(21,780)

Total shareholders' equity

 

1,377,406

 

 

1,366,217

 

 

1,284,299

 

 

1,250,729

 

 

1,188,721

Total liabilities and shareholders' equity

$

19,163,708

 

$

19,575,028

 

$

19,108,922

 

$

19,635,108

 

$

18,817,660

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

 

Average

Balance

Average Yield

or Cost (%)

 

Average

Balance

Average Yield

or Cost (%)

 

Average

Balance

Average Yield

or Cost (%)

Assets

 

 

 

 

 

 

 

 

Interest earning deposits

$

826,240

0.16%

 

$

1,568,510

0.15%

 

$

1,177,315

0.10%

Investment securities (1)

 

4,036,966

2.01%

 

 

2,621,844

2.32%

 

 

1,357,558

2.35%

Loans and leases:

 

 

 

 

 

 

 

 

Commercial loans to mortgage companies

 

1,836,647

3.09%

 

 

2,289,061

3.02%

 

 

3,122,098

3.09%

Multi-family loans

 

1,531,846

3.64%

 

 

1,327,732

3.72%

 

 

1,689,174

3.80%

Commercial & industrial loans and leases (2)

 

4,124,408

3.60%

 

 

3,514,186

3.71%

 

 

2,848,328

3.97%

Loans receivable, PPP

 

2,641,318

5.66%

 

 

3,898,607

8.35%

 

 

4,623,213

3.41%

Non-owner occupied commercial real estate loans

 

1,312,210

3.77%

 

 

1,334,184

3.80%

 

 

1,348,938

3.85%

Residential mortgages

 

416,417

3.58%

 

 

314,551

3.68%

 

 

373,497

3.78%

Installment loans

 

1,794,145

9.03%

 

 

1,657,049

8.96%

 

 

1,323,863

9.04%

Total loans and leases (3)

 

13,656,991

4.67%

 

 

14,335,370

5.48%

 

 

15,329,111

4.02%

Other interest-earning assets

 

52,111

NM (7)

 

 

50,709

1.81%

 

 

79,960

3.64%

Total interest-earning assets

 

18,572,308

4.00%

 

 

18,576,433

4.57%

 

 

17,943,944

3.64%

Non-interest-earning assets

 

557,022

 

 

 

637,808

 

 

 

581,777

 

Total assets

$

19,129,330

 

 

$

19,214,241

 

 

$

18,525,721

 

Liabilities

 

 

 

 

 

 

 

 

Interest checking accounts

 

5,769,372

0.54%

 

 

5,258,982

0.58%

 

 

2,691,723

0.84%

Money market deposit accounts

 

4,880,051

0.39%

 

 

5,293,529

0.43%

 

 

4,435,930

0.55%

Other savings accounts

 

880,113

0.36%

 

 

1,189,899

0.45%

 

 

1,414,350

0.69%

Certificates of deposit

 

450,644

0.47%

 

 

541,528

0.51%

 

 

666,239

0.97%

Total interest-bearing deposits (4)

 

11,980,180

0.46%

 

 

12,283,938

0.50%

 

 

9,208,242

0.69%

Federal funds purchased

 

88,611

0.33%

 

 

815

0.15%

 

 

16,333

0.07%

FRB PPP liquidity facility

 

—%

 

 

—%

 

 

3,941,718

0.35%

Borrowings

 

532,610

3.80%

 

 

465,600

4.20%

 

 

1,155,493

3.27%

Total interest-bearing liabilities

 

12,601,401

0.60%

 

 

12,750,353

0.63%

 

 

14,321,786

0.80%

Non-interest-bearing deposits (4)

 

4,900,983

 

 

 

4,817,835

 

 

 

2,819,871

 

Total deposits and borrowings

 

17,502,384

0.43%

 

 

17,568,188

0.46%

 

 

17,141,657

0.67%

Other non-interest-bearing liabilities

 

237,131

 

 

 

328,782

 

 

 

247,798

 

Total liabilities

 

17,739,515

 

 

 

17,896,970

 

 

 

17,389,455

 

Shareholders' equity

 

1,389,815

 

 

 

1,317,271

 

 

 

1,136,266

 

Total liabilities and shareholders' equity

$

19,129,330

 

 

$

19,214,241

 

 

$

18,525,721

 

Interest spread

 

3.57%

 

 

4.11%

 

 

2.97%

Net interest margin

 

3.59%

 

 

4.14%

 

 

3.00%

Net interest margin tax equivalent (5)

 

3.60%

 

 

4.14%

 

 

3.00%

Net interest margin tax equivalent excl. PPP (6)

 

3.32%

 

 

3.12%

 

 

2.99%

 

(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 0.33%, 0.36% and 0.53% for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

(5) Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended March 31, 2022, December 31, 2021 and March 31, 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 March 31, 2022, December 31, 2021 and March 31, 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)

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

2022

 

 

2021

 

 

2021

 

 

2021

 

 

2021

Commercial:

 

 

 

 

 

 

 

 

 

Multi-family

$

1,705,027

 

$

1,486,308

 

$

1,387,166

 

$

1,497,485

 

$

1,659,529

Loans to mortgage companies

 

1,830,121

 

 

2,362,438

 

 

2,626,483

 

 

2,922,217

 

 

3,463,490

Commercial & industrial

 

3,921,439

 

 

3,346,670

 

 

2,604,367

 

 

2,293,723

 

 

2,164,784

Commercial real estate owner occupied

 

701,893

 

 

654,922

 

 

656,044

 

 

653,649

 

 

590,093

Loans receivable, PPP

 

2,195,902

 

 

3,250,008

 

 

4,957,357

 

 

6,305,056

 

 

5,178,089

Commercial real estate non-owner occupied

 

1,140,311

 

 

1,121,238

 

 

1,144,643

 

 

1,206,646

 

 

1,194,832

Construction

 

161,024

 

 

198,981

 

 

198,607

 

 

179,198

 

 

156,837

Total commercial loans and leases

 

11,655,717

 

 

12,420,565

 

 

13,574,667

 

 

15,057,974

 

 

14,407,654

Consumer:

 

 

 

 

 

 

 

 

 

Residential

 

469,426

 

 

350,984

 

 

260,820

 

 

273,493

 

 

295,654

Manufactured housing

 

50,669

 

 

52,861

 

 

55,635

 

 

57,904

 

 

59,977

Installment

 

1,897,706

 

 

1,744,475

 

 

1,624,415

 

 

1,577,651

 

 

1,405,021

Total consumer loans

 

2,417,801

 

 

2,148,320

 

 

1,940,870

 

 

1,909,048

 

 

1,760,652

Total loans and leases

$

14,073,518

 

$

14,568,885

 

$

15,515,537

 

$

16,967,022

 

$

16,168,306

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

PERIOD END DEPOSIT COMPOSITION - UNAUDITED

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

2022

 

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

 

 

 

 

 

 

 

 

Demand, non-interest bearing

$

4,594,428

 

$

4,459,790

 

$

4,954,331

 

$

2,699,869

 

$

2,687,628

Demand, interest bearing

 

5,591,468

 

 

6,488,406

 

 

5,023,081

 

 

4,206,355

 

 

3,228,941

Total demand deposits

 

10,185,896

 

 

10,948,196

 

 

9,977,412

 

 

6,906,224

 

 

5,916,569

Savings

 

802,395

 

 

973,317

 

 

1,310,343

 

 

1,431,756

 

 

1,483,482

Money market

 

4,981,077

 

 

4,349,073

 

 

5,090,121

 

 

4,908,809

 

 

4,406,508

Time deposits

 

446,192

 

 

507,338

 

 

593,149

 

 

627,150

 

 

665,881

Total deposits

$

16,415,560

 

$

16,777,924

 

$

16,971,025

 

$

13,873,939

 

$

12,472,440

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

ASSET QUALITY - UNAUDITED

(Dollars in thousands)

As of March 31, 2022

As of December 31, 2021

As of March 31, 2021

 

Total loans

Non accrual /NPLs

Allowance for credit losses

Total NPLs to total loans

Total reserves to total NPLs

Total loans

Non accrual /NPLs

Allowance for credit losses

Total NPLs to total loans

Total reserves to total NPLs

Total loans

Non accrual /NPLs

Allowance for credit losses

Total NPLs to total loans

Total reserves to total NPLs

 

Loan type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-family

$

1,705,027

$

17,869

$

7,437

1.05 %

41.62 %

$

1,486,308

$

22,654

$

4,477

1.52 %

19.76 %

$

1,640,278

$

20,530

$

8,026

1.25 %

39.09 %

Commercial & industrial (1)

 

3,995,802

 

5,490

 

10,765

0.14 %

196.08 %

 

3,424,783

 

6,096

 

12,702

0.18 %

208.37 %

 

2,220,652

 

7,544

 

7,503

0.34 %

99.46 %

Commercial real estate owner occupied

 

701,893

 

2,191

 

3,841

0.31 %

175.31 %

 

654,922

 

2,475

 

3,213

0.38 %

129.82 %

 

590,093

 

3,242

 

5,935

0.55 %

183.07 %

Commercial real estate non-owner occupied

 

1,140,311

 

1,302

 

5,955

0.11 %

457.37 %

 

1,121,238

 

2,815

 

6,210

0.25 %

220.60 %

 

1,194,832

 

2,356

 

11,621

0.20 %

493.25 %

Construction

 

161,024

 

 

939

— %

— %

 

198,981

 

 

692

— %

— %

 

156,837

 

 

4,103

— %

— %

Total commercial loans and leases receivable

 

7,704,057

 

26,852

 

28,937

0.35 %

107.76 %

 

6,886,232

 

34,040

 

27,294

0.49 %

80.18 %

 

5,802,692

 

33,672

 

37,188

0.58 %

110.44 %

Residential

 

466,423

 

8,124

 

4,685

1.74 %

57.67 %

 

334,730

 

7,727

 

2,383

2.31 %

30.84 %

 

293,805

 

9,353

 

3,209

3.18 %

34.31 %

Manufactured housing

 

50,669

 

3,430

 

4,342

6.77 %

126.59 %

 

52,861

 

3,563

 

4,278

6.74 %

120.07 %

 

59,977

 

2,871

 

4,799

4.79 %

167.15 %

Installment

 

1,897,706

 

4,865

 

107,883

0.26 %

2217.53 %

 

1,744,475

 

3,783

 

103,849

0.22 %

2745.15 %

 

1,380,015

 

2,185

 

83,540

0.16 %

3823.34 %

Total consumer loans receivable

 

2,414,798

 

16,419

 

116,910

0.68 %

712.04 %

 

2,132,066

 

15,073

 

110,510

0.71 %

733.17 %

 

1,733,797

 

14,409

 

91,548

0.83 %

635.35 %

Loans and leases receivable (1)

 

10,118,855

 

43,271

 

145,847

0.43 %

337.05 %

 

9,018,298

 

49,113

 

137,804

0.54 %

280.59 %

 

7,536,489

 

48,081

 

128,736

0.64 %

267.75 %

Loans receivable, PPP

 

2,195,902

 

 

— %

— %

 

3,250,008

 

 

— %

— %

 

5,178,089

 

 

— %

— %

Loans receivable, mortgage warehouse, at fair value

 

1,755,758

 

 

— %

— %

 

2,284,325

 

 

— %

— %

 

3,407,622

 

 

— %

— %

Total loans held for sale

 

3,003

 

507

 

16.88 %

— %

 

16,254

 

507

 

3.12 %

— %

 

46,106

 

643

 

1.39 %

— %

Total portfolio

$

14,073,518

$

43,778

$

145,847

0.31 %

333.15 %

$

14,568,885

$

49,620

$

137,804

0.34 %

277.72 %

$

16,168,306

$

48,724

$

128,736

0.30 %

264.21 %

(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)

 

 

 

 

 

 

 

 

 

 

Q1

 

Q4

 

Q3

 

Q2

 

Q1

 

2022

 

2021

 

2021

 

2021

 

2021

Loan type

 

 

 

 

 

 

 

 

 

Multi-family

$

(337)

 

$

 

$

 

$

 

$

1,132

Commercial & industrial

 

(59)

 

 

240

 

 

116

 

 

(283)

 

 

375

Commercial real estate owner occupied

 

(7)

 

 

66

 

 

50

 

 

(1)

 

 

134

Commercial real estate non-owner occupied

 

(8)

 

 

(14)

 

 

943

 

 

(59)

 

 

(10)

Construction

 

(113)

 

 

(3)

 

 

(3)

 

 

(114)

 

 

(5)

Residential

 

(2)

 

 

(6)

 

 

54

 

 

(12)

 

 

40

Installment

 

7,752

 

 

7,299

 

 

5,944

 

 

7,060

 

 

10,855

Total net charge-offs (recoveries) from loans

held for investment

$

7,226

 

$

7,582

 

$

7,104

 

$

6,591

 

$

12,521

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

(dollars in thousands except per share data)

USD

Per

share

 

USD

Per

share

 

USD

Per

share

 

USD

Per

share

 

USD

Per

share

GAAP net income to common shareholders

$

74,896

$

2.18

 

$

98,647

$

2.87

 

$

110,241

$

3.25

 

$

58,042

$

1.72

 

$

33,204

$

1.01

Reconciling items (after tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss from discontinued operations

 

 

 

 

1,585

 

0.05

 

 

 

 

 

 

 

 

38,036

 

1.16

Severance expense

 

 

 

 

 

 

 

 

 

 

1,517

 

0.04

 

 

 

Merger and acquisition related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

320

 

0.01

Legal reserves

 

 

 

 

 

 

 

897

 

0.03

 

 

 

 

 

 

(Gains) losses on investment securities

 

1,030

 

0.03

 

 

43

 

0.00

 

 

(4,591)

 

(0.14)

 

 

(2,694)

 

(0.08)

 

 

(18,773)

 

(0.57)

Loss on sale of foreign subsidiaries

 

 

 

 

 

 

 

 

 

 

2,150

 

0.06

 

 

 

Loss on cash flow hedge derivative terminations

 

 

 

 

 

 

 

 

 

 

 

 

 

18,716

 

0.57

Derivative credit valuation adjustment

 

(736)

 

(0.02)

 

 

(180)

 

(0.01)

 

 

(198)

 

(0.01)

 

 

288

 

0.01

 

 

(1,195)

 

(0.04)

Deposit relationship adjustment fees

 

 

 

 

 

 

 

4,707

 

0.14

 

 

 

 

 

 

Loss on redemption of preferred stock

 

 

 

 

 

 

 

2,820

 

0.08

 

 

 

 

 

 

Core earnings

$

75,190

$

2.19

 

$

100,095

$

2.92

 

$

113,876

$

3.36

 

$

59,303

$

1.76

 

$

70,308

$

2.14

 

Core Earnings, excluding PPP - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

(dollars in thousands except per share data)

USD

Per

share

 

USD

Per

share

 

USD

Per

share

 

USD

Per

share

 

USD

Per

share

GAAP net income to common shareholders

$

74,896

$

2.18

 

$

98,647

$

2.87

 

$

110,241

$

3.25

 

$

58,042

$

1.72

 

$

33,204

$

1.01

Less: PPP net income (after tax)

 

24,713

 

0.72

 

 

64,323

 

1.87

 

 

81,337

 

2.40

 

 

24,312

 

0.72

 

 

25,079

 

0.76

GAAP net income to common shareholders, excluding PPP

 

50,183

 

1.46

 

 

34,324

 

1.00

 

 

28,904

 

0.85

 

 

33,730

 

1.00

 

 

8,125

 

0.25

Reconciling items (after tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss from discontinued operations

 

 

 

 

1,585

 

0.05

 

 

 

 

 

 

 

 

38,036

 

1.16

Severance expense

 

 

 

 

 

 

 

 

 

 

1,517

 

0.04

 

 

 

Merger and acquisition related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

320

 

0.01

Legal reserves

 

 

 

 

 

 

 

897

 

0.03

 

 

 

 

 

 

(Gains) losses on investment securities

 

1,030

 

0.03

 

 

43

 

0.00

 

 

(4,591)

 

(0.14)

 

 

(2,694)

 

(0.08)

 

 

(18,773)

 

(0.57)

Loss on sale of foreign subsidiaries

 

 

 

 

 

 

 

 

 

 

2,150

 

0.06

 

 

 

Loss on cash flow hedge derivative terminations

 

 

 

 

 

 

 

 

 

 

 

 

 

18,716

 

0.57

Derivative credit valuation adjustment

 

(736)

 

(0.02)

 

 

(180)

 

(0.01)

 

 

(198)

 

(0.01)

 

 

288

 

0.01

 

 

(1,195)

 

(0.04)

Deposit relationship adjustment fees

 

 

 

 

 

 

 

4,707

 

0.14

 

 

 

 

 

 

Loss on redemption of preferred stock

 

 

 

 

 

 

 

2,820

 

0.08

 

 

 

 

 

 

Core earnings, excluding PPP

$

50,477

$

1.47

 

$

35,772

$

1.04

 

$

32,539

$

0.96

 

$

34,991

$

1.04

 

$

45,229

$

1.38

Core Return on Average Assets - Customers Bancorp

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

GAAP net income

$

76,761

 

$

100,669

 

$

116,042

 

$

61,341

 

$

36,595

Reconciling items (after tax):

 

 

 

 

 

 

 

 

 

Net loss from discontinued operations

 

 

 

1,585

 

 

 

 

 

 

38,036

Severance expense

 

 

 

 

 

 

 

1,517

 

 

Merger and acquisition related expenses

 

 

 

 

 

 

 

 

 

320

Legal reserves

 

 

 

 

 

897

 

 

 

 

(Gains) losses on investment securities

 

1,030

 

 

43

 

 

(4,591)

 

 

(2,694)

 

 

(18,773)

Loss on sale of foreign subsidiaries

 

 

 

 

 

 

 

2,150

 

 

Loss on cash flow hedge derivative terminations

 

 

 

 

 

 

 

 

 

18,716

Derivative credit valuation adjustment

 

(736)

 

 

(180)

 

 

(198)

 

 

288

 

 

(1,195)

Deposit relationship adjustment fees

 

 

 

 

 

4,707

 

 

 

 

Core net income

$

77,055

 

$

102,117

 

$

116,857

 

$

62,602

 

$

73,699

 

 

 

 

 

 

 

 

 

 

Average total assets

$

19,129,330

 

$

19,214,241

 

$

19,739,340

 

$

19,306,948

 

$

18,525,721

 

 

 

 

 

 

 

 

 

 

Core return on average assets

 

1.63 %

 

 

2.11 %

 

 

2.35 %

 

 

1.30 %

 

 

1.61 %

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

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

GAAP net income

$

76,761

 

$

100,669

 

$

116,042

 

$

61,341

 

$

36,595

Reconciling items:

 

 

 

 

 

 

 

 

 

Income tax expense

 

19,332

 

 

12,993

 

 

36,263

 

 

20,124

 

 

17,560

Provision (benefit) for credit losses

 

15,997

 

 

13,890

 

 

13,164

 

 

3,291

 

 

(2,919)

Provision (benefit) for credit losses on unfunded commitments

 

(109)

 

 

352

 

 

669

 

 

45

 

 

(1,286)

Severance expense

 

 

 

 

 

 

 

2,004

 

 

Net loss from discontinued operations

 

 

 

1,585

 

 

 

 

 

 

38,036

Merger and acquisition related expenses

 

 

 

 

 

 

 

 

 

418

Legal reserves

 

 

 

 

 

1,185

 

 

 

 

(Gains) losses on investment securities

 

1,339

 

 

49

 

 

(6,063)

 

 

(3,558)

 

 

(24,540)

Loss on sale of foreign subsidiaries

 

 

 

 

 

 

 

2,840

 

 

Loss on cash flow hedge derivative terminations

 

 

 

 

 

 

 

 

 

24,467

Derivative credit valuation adjustment

 

(957)

 

 

(203)

 

 

(261)

 

 

380

 

 

(1,562)

Deposit relationship adjustment fees

 

 

 

 

 

6,216

 

 

 

 

Adjusted net income - pre-tax pre-provision

$

112,363

 

$

129,335

 

$

167,215

 

$

86,467

 

$

86,769

 

 

 

 

 

 

 

 

 

 

Average total assets

$

19,129,330

 

$

19,214,241

 

$

19,739,340

 

$

19,306,948

 

$

18,525,721

 

 

 

 

 

 

 

 

 

 

Adjusted ROAA - pre-tax pre-provision

 

2.38 %

 

 

2.67 %

 

 

3.36 %

 

 

1.80 %

 

 

1.90 %

Core Return on Average Common Equity - Customers Bancorp

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

GAAP net income to common shareholders

$

74,896

 

$

98,647

 

$

110,241

 

$

58,042

 

$

33,204

Reconciling items (after tax):

 

 

 

 

 

 

 

 

 

Net loss from discontinued operations

 

 

 

1,585

 

 

 

 

 

 

38,036

Severance expense

 

 

 

 

 

 

 

1,517

 

 

Merger and acquisition related expenses

 

 

 

 

 

 

 

 

 

320

Legal reserves

 

 

 

 

 

897

 

 

 

 

(Gains) losses on investment securities

 

1,030

 

 

43

 

 

(4,591)

 

 

(2,694)

 

 

(18,773)

Loss on sale of foreign subsidiaries

 

 

 

 

 

 

 

2,150

 

 

Loss on cash flow hedge derivative terminations

 

 

 

 

 

 

 

 

 

18,716

Derivative credit valuation adjustment

 

(736)

 

 

(180)

 

 

(198)

 

 

288

 

 

(1,195)

Deposit relationship adjustment fees

 

 

 

 

 

4,707

 

 

 

 

Loss on redemption of preferred stock

 

 

 

 

 

2,820

 

 

 

 

Core earnings

$

75,190

 

$

100,095

 

$

113,876

 

$

59,303

 

$

70,308

 

 

 

 

 

 

 

 

 

 

Average total common shareholders' equity

$

1,252,022

 

$

1,179,478

 

$

1,071,566

 

$

1,002,624

 

$

918,795

 

 

 

 

 

 

 

 

 

 

Core return on average common equity

 

24.36 %

 

 

33.67 %

 

 

42.16 %

 

 

23.72 %

 

 

31.03 %

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

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

GAAP net income to common shareholders

$

74,896

 

$

98,647

 

$

110,241

 

$

58,042

 

$

33,204

Reconciling items:

 

 

 

 

 

 

 

 

 

Income tax expense

 

19,332

 

 

12,993

 

 

36,263

 

 

20,124

 

 

17,560

Provision (benefit) for credit losses

 

15,997

 

 

13,890

 

 

13,164

 

 

3,291

 

 

(2,919)

Provision (benefit) for credit losses on unfunded commitments

 

(109)

 

 

352

 

 

669

 

 

45

 

 

(1,286)

Net loss from discontinued operations

 

 

 

1,585

 

 

 

 

 

 

38,036

Severance expense

 

 

 

 

 

 

 

2,004

 

 

Merger and acquisition related expenses

 

 

 

 

 

 

 

 

 

418

Legal reserves

 

 

 

 

 

1,185

 

 

 

 

(Gains) losses on investment securities

 

1,339

 

 

49

 

 

(6,063)

 

 

(3,558)

 

 

(24,540)

Loss on sale of foreign subsidiaries

 

 

 

 

 

 

 

2,840

 

 

Loss on cash flow hedge derivative terminations

 

 

 

 

 

 

 

 

 

24,467

Derivative credit valuation adjustment

 

(957)

 

 

(203)

 

 

(261)

 

 

380

 

 

(1,562)

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

$

110,498

 

$

127,313

 

$

164,234

 

$

83,168

 

$

83,378

 

 

 

 

 

 

 

 

 

 

Average total common shareholders' equity

$

1,252,022

 

$

1,179,478

 

$

1,071,566

 

$

1,002,624

 

$

918,795

 

 

 

 

 

 

 

 

 

 

Adjusted ROCE - pre-tax pre-provision

 

35.79 %

 

 

42.82 %

 

 

60.81 %

 

 

33.27 %

 

 

36.80 %

Net Interest Margin, Tax Equivalent - Customers Bancorp

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

GAAP net interest income

$

164,699

 

$

193,694

 

$

219,892

 

$

138,757

 

$

132,731

Tax-equivalent adjustment

 

239

 

 

276

 

 

290

 

 

289

 

 

292

Net interest income tax equivalent

$

164,938

 

$

193,970

 

$

220,182

 

$

139,046

 

$

133,023

 

 

 

 

 

 

 

 

 

 

Average total interest earning assets

$

18,572,308

 

$

18,576,433

 

$

19,033,826

 

$

18,698,996

 

$

17,943,944

 

 

 

 

 

 

 

 

 

 

Net interest margin, tax equivalent

 

3.60 %

 

 

4.14 %

 

 

4.59 %

 

 

2.98 %

 

 

3.00 %

Net Interest Margin, Tax Equivalent, excluding PPP - Customers Bancorp

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

GAAP net interest income

$

164,699

 

$

193,694

 

$

219,892

 

$

138,757

 

$

132,731

PPP net interest income

 

(34,615)

 

 

(78,647)

 

 

(112,005)

 

 

(35,785)

 

 

(34,842)

Tax-equivalent adjustment

 

239

 

 

276

 

 

290

 

 

289

 

 

292

Net interest income, tax equivalent, excluding PPP

$

130,323

 

$

115,323

 

$

108,177

 

$

103,261

 

$

98,181

 

 

 

 

 

 

 

 

 

 

GAAP average total interest earning assets

$

18,572,308

 

$

18,576,433

 

$

19,033,826

 

$

18,698,996

 

$

17,943,944

Average PPP loans

 

(2,641,318)

 

 

(3,898,607)

 

 

(5,778,367)

 

 

(6,133,184)

 

 

(4,623,213)

Adjusted average total interest earning assets

$

15,930,990

 

$

14,677,826

 

$

13,255,459

 

$

12,565,812

 

$

13,320,731

 

 

 

 

 

 

 

 

 

 

Net interest margin, tax equivalent, excluding PPP

 

3.32 %

 

 

3.12 %

 

 

3.24 %

 

 

3.30 %

 

 

2.99 %

Interest Income on Core Loans (Total Loans and Leases, excluding PPP)

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

Interest income on loans and leases

$

157,175

 

$

198,000

 

$

233,097

 

$

153,608

 

$

152,117

 

 

 

 

 

 

 

 

 

 

PPP interest income

 

(36,894)

 

 

(82,086)

 

 

(117,102)

 

 

(41,137)

 

 

(38,832)

Interest Income on Core Loans (Loans and leases, excluding PPP)

$

120,281

 

$

115,914

 

$

115,995

 

$

112,471

 

$

113,285

Core Efficiency Ratio - Customers Bancorp

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

GAAP net interest income

$

164,699

 

$

193,694

 

$

219,892

 

$

138,757

 

$

132,731

 

 

 

 

 

 

 

 

 

 

GAAP non-interest income

$

21,198

 

$

16,991

 

$

25,586

 

$

16,822

 

$

18,468

(Gains) losses on investment securities

 

1,339

 

 

49

 

 

(6,063)

 

 

(3,558)

 

 

(24,540)

Derivative credit valuation adjustment

 

(957)

 

 

(203)

 

 

(261)

 

 

380

 

 

(1,562)

Loss on cash flow hedge derivative terminations

 

 

 

 

 

 

 

 

 

24,467

Loss on sale of foreign subsidiaries

 

 

 

 

 

 

 

2,840

 

 

Core non-interest income

 

21,580

 

 

16,837

 

 

19,262

 

 

16,484

 

 

16,833

Core revenue

$

186,279

 

$

210,531

 

$

239,154

 

$

155,241

 

$

149,564

 

 

 

 

 

 

 

 

 

 

GAAP non-interest expense

$

73,807

 

$

81,548

 

$

80,009

 

$

70,823

 

$

61,927

Severance expense

 

 

 

 

 

 

 

(2,004)

 

 

Legal reserves

 

 

 

 

 

(1,185)

 

 

 

 

Merger and acquisition related expenses

 

 

 

 

 

 

 

 

 

(418)

Deposit relationship adjustment fees

 

 

 

 

 

(6,216)

 

 

 

 

Core non-interest expense

$

73,807

 

$

81,548

 

$

72,608

 

$

68,819

 

$

61,509

 

 

 

 

 

 

 

 

 

 

Core efficiency ratio (1)

 

39.62 %

 

 

38.73 %

 

 

30.36 %

 

 

44.33 %

 

 

41.13 %

(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)

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

GAAP total shareholders' equity

$

1,377,406

 

$

1,366,217

 

$

1,284,299

 

$

1,250,729

 

$

1,188,721

Reconciling items:

 

 

 

 

 

 

 

 

 

Preferred stock

 

(137,794)

 

 

(137,794)

 

 

(137,794)

 

 

(217,471)

 

 

(217,471)

Goodwill and other intangibles

 

(3,678)

 

 

(3,736)

 

 

(3,794)

 

 

(3,853)

 

 

(3,911)

Tangible common equity

$

1,235,934

 

$

1,224,687

 

$

1,142,711

 

$

1,029,405

 

$

967,339

 

 

 

 

 

 

 

 

 

 

GAAP total assets

$

19,163,708

 

$

19,575,028

 

$

19,108,922

 

$

19,635,108

 

$

18,817,660

Reconciling items:

 

 

 

 

 

 

 

 

 

Goodwill and other intangibles

 

(3,678)

 

 

(3,736)

 

 

(3,794)

 

 

(3,853)

 

 

(3,911)

Tangible assets

$

19,160,030

 

$

19,571,292

 

$

19,105,128

 

$

19,631,255

 

$

18,813,749

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

6.45 %

 

 

6.26 %

 

 

5.98 %

 

 

5.24 %

 

 

5.14 %

Tangible Book Value per Common Share - Customers Bancorp

 

 

 

 

 

 

 

 

 

(dollars in thousands except share and per share data)

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

GAAP total shareholders' equity

$

1,377,406

 

$

1,366,217

 

$

1,284,299

 

$

1,250,729

 

$

1,188,721

Reconciling Items:

 

 

 

 

 

 

 

 

 

Preferred stock

 

(137,794)

 

 

(137,794)

 

 

(137,794)

 

 

(217,471)

 

 

(217,471)

Goodwill and other intangibles

 

(3,678)

 

 

(3,736)

 

 

(3,794)

 

 

(3,853)

 

 

(3,911)

Tangible common equity

$

1,235,934

 

$

1,224,687

 

$

1,142,711

 

$

1,029,405

 

$

967,339

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

32,957,847

 

 

32,913,267

 

 

32,537,976

 

 

32,353,256

 

 

32,238,762

 

 

 

��

 

 

 

 

 

 

Tangible book value per common share

$

37.50

 

$

37.21

 

$

35.12

 

$

31.82

 

$

30.01

Core Loans (Total Loans and Leases, excluding PPP)

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

Total loans and leases

$

14,073,518

 

$

14,568,885

 

$

15,515,537

 

$

16,967,022

 

$

16,168,306

 

 

 

 

 

 

 

 

 

 

Loans receivable, PPP

 

(2,195,902)

 

 

(3,250,008)

 

 

(4,957,357)

 

 

(6,305,056)

 

 

(5,178,089)

Core Loans (Loans and leases, excluding PPP)

$

11,877,616

 

$

11,318,877

 

$

10,558,180

 

$

10,661,966

 

$

10,990,217

Total Assets, excluding PPP

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

Total assets

$

19,163,708

 

$

19,575,028

 

$

19,108,922

 

$

19,635,108

 

$

18,817,660

 

 

 

 

 

 

 

 

 

 

Loans receivable, PPP

 

(2,195,902)

 

 

(3,250,008)

 

 

(4,957,357)

 

 

(6,305,056)

 

 

(5,178,089)

Total assets, excluding PPP

$

16,967,806

 

$

16,325,020

 

$

14,151,565

 

$

13,330,052

 

$

13,639,571

Coverage of credit loss reserves for loans and leases held for investment, excluding PPP

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

Loans and leases receivable

$

12,314,757

 

$

12,268,306

 

$

12,927,956

 

$

14,077,198

 

$

12,714,578

 

 

 

 

 

 

 

 

 

 

Loans receivable, PPP

 

(2,195,902)

 

 

(3,250,008)

 

 

(4,957,357)

 

 

(6,305,056)

 

 

(5,178,089)

Loans and leases held for investment, excluding PPP

$

10,118,855

 

$

9,018,298

 

$

7,970,599

 

$

7,772,142

 

$

7,536,489

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans and leases

$

145,847

 

$

137,804

 

$

131,496

 

$

125,436

 

$

128,736

 

 

 

 

 

 

 

 

 

 

Coverage of credit loss reserves for loans and leases held for investment, excluding PPP

 

1.44 %

 

 

1.53 %

 

 

1.65 %

 

 

1.61 %

 

 

1.71 %

Tangible Common Equity to Tangible Assets, excluding PPP - Customers Bancorp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

GAAP total shareholders' equity

$

1,377,406

 

$

1,366,217

 

$

1,284,299

 

$

1,250,729

 

$

1,188,721

Reconciling items:

 

 

 

 

 

 

 

 

 

Preferred stock

 

(137,794)

 

 

(137,794)

 

 

(137,794)

 

 

(217,471)

 

 

(217,471)

Goodwill and other intangibles

 

(3,678)

 

 

(3,736)

 

 

(3,794)

 

 

(3,853)

 

 

(3,911)

Tangible common equity

$

1,235,934

 

$

1,224,687

 

$

1,142,711

 

$

1,029,405

 

$

967,339

 

 

 

 

 

 

 

 

 

 

GAAP total assets

$

19,163,708

 

$

19,575,028

 

$

19,108,922

 

$

19,635,108

 

$

18,817,660

Loans receivable, PPP

 

(2,195,902)

 

 

(3,250,008)

 

 

(4,957,357)

 

 

(6,305,056)

 

 

(5,178,089)

Total assets, excluding PPP

$

16,967,806

 

$

16,325,020

 

$

14,151,565

 

$

13,330,052

 

$

13,639,571

Reconciling items:

 

 

 

 

 

 

 

 

 

Goodwill and other intangibles

 

(3,678)

 

 

(3,736)

 

 

(3,794)

 

 

(3,853)

 

 

(3,911)

Tangible assets, excluding PPP

$

16,964,128

 

$

16,321,284

 

$

14,147,771

 

$

13,326,199

 

$

13,635,660

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets, excluding PPP

 

7.29 %

 

 

7.50 %

 

 

8.08 %

 

 

7.72 %

 

 

7.09 %

Deferments to total loans and leases, excluding PPP

 

 

 

 

 

 

 

 

 

(dollars in thousands except per share data)

Q1 2022

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

Total loans and leases

$

14,073,518

 

$

14,568,885

 

$

15,515,537

 

$

16,967,022

 

$

16,168,306

Loans receivable, PPP

 

(2,195,902)

 

 

(3,250,008)

 

 

(4,957,357)

 

 

(6,305,056)

 

 

(5,178,089)

Total loans and leases, excluding PPP

$

11,877,616

 

$

11,318,877

 

$

10,558,180

 

$

10,661,966

 

$

10,990,217

 

 

 

 

 

 

 

 

 

 

Commercial deferments

$

 

$

 

$

73,400

 

$

89,800

 

$

176,100

Consumer deferments

 

3,262

 

 

6,060

 

 

6,708

 

 

8,400

 

 

13,000

Total deferments

$

3,262

 

$

6,060

 

$

80,108

 

$

98,200

 

$

189,100

 

 

 

 

 

 

 

 

 

 

Commercial deferments to total loans and leases, excluding PPP

 

— %

 

 

— %

 

 

0.7 %

 

 

0.8 %

 

 

1.6 %

Consumer deferments to total loans and leases, excluding PPP

 

0.0 %

 

 

0.1 %

 

 

0.1 %

 

 

0.1 %

 

 

0.1 %

Total deferments to total loans and leases, excluding PPP

 

0.0 %

 

 

0.1 %

 

 

0.8 %

 

 

0.9 %

 

 

1.7 %