Wall Street analysts expect Customers Bancorp (CUBI) to post quarterly earnings of $1.76 per share in its upcoming report, which indicates a year-over-year increase of 47.9%. Revenues are expected to be $187.87 million, up 31.9% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 3.1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a company ...

☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023 Pennsylvania 27-2290659 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) Securities registered pursuant to Section 12(g) of the Act: None On November 3, 2023, 31,413,946 shares of Voting Common Stock were outstanding. 2 Table of Contents | --- | --- | --- | --- | |----------------------------------------------------------- ...

Commercial Lending Table of Contents On June 30, 2023, Customers sold $670 million of short-term syndicated capital call lines of credit within Specialty Lending consisting of $280.7 million of loans held for investment and $389.3 million of unfunded loan commitments. The Bank exited completely from these non-strategic, short-term syndicated capital call lines of credit, which did not provide any deposit relationships. 71 Purchases and sales of loans were as follows for the three and six months ended June 3 ...

Financial Data and Key Metrics Changes - The company reported a GAAP EPS of $1.39 and core EPS of $1.65, with core earnings of $52.2 million, reflecting a strong performance despite industry challenges [7][65] - Net interest margin improved by 19 basis points to 3.15%, contributing to a 10% increase in net interest income on a smaller loan base [4][7] - The common equity Tier 1 (CET1) ratio increased by 70 basis points to 10.3%, with a target of 11% to 11.5% by year-end [15][65] Business Line Data and Key Metrics Changes - Deposits increased by a net $227 million, with a significant $1 billion or 29% quarter-over-quarter rise in non-interest-bearing deposits [5][31] - Loan balances were tactically reduced by approximately $800 million, with a focus on exiting non-strategic credits to enhance balance sheet capacity [33][10] - The average yield on loans increased to 6.83%, while the loan-to-deposit ratio ended at 77%, which is 9 percentage points lower than regional bank peers [13][8] Market Data and Key Metrics Changes - The company maintained a robust liquidity position with over $11 billion in total liquidity and more than $9 billion in immediately available liquidity [14][62] - Non-performing assets (NPAs) decreased by 2 basis points to 13 basis points of total assets, indicating strong credit quality [8][63] - The commercial real estate exposure is only 15% of the loan portfolio, significantly lower than regional bank peers [63] Company Strategy and Development Direction - The company aims to strengthen its balance sheet by improving its deposit franchise and maintaining industry-leading liquidity levels [17][65] - A focus on risk management remains central to the company's strategy, with ongoing efforts to derisk the balance sheet and exit non-strategic relationships [6][25] - The acquisition of the FDIC portfolio is expected to enhance the deposit base and provide significant growth opportunities in the venture banking sector [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain macroeconomic environment, emphasizing the importance of credit quality and risk management [25][66] - The company anticipates continued growth in core deposits and aims to maintain a low-cost deposit strategy moving forward [17][84] - Management reiterated the commitment to achieving a tangible book value of at least $45 by year-end, reflecting strong capital generation [35][65] Other Important Information - Core non-interest expenses increased to $89 million, primarily due to higher insurance expenses and incentive accruals related to the new venture banking team [61][65] - The company successfully sold $550 million of consumer installment loans, validating its strategy to increase asset velocity and generate fee income [10][32] Q&A Session Summary Question: What is the expected loan portfolio mix for 2024 and beyond? - Management indicated a target mix of approximately 50% commercial and industrial (C&I), 5% to 10% commercial real estate (CRE), and the balance in multifamily and other loans [68] Question: How is the deposit pipeline characterized? - The deposit pipeline is expected to consist of 25% to 35% non-interest-bearing deposits, with the remainder being low-cost deposits [84] Question: What is the impact of the Venture Banking acquisition on competitive positioning? - The acquisition enhances the company's nationwide presence and capabilities, allowing for better deposit gathering and lending opportunities [91][106]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . 001-35542 (Commission File number) (Exact name of registrant as specified in its charter) Customers Bancorp, Inc. 701 Reading Avenue West Reading, PA ...

Customers Bancorp Inc. (NYSE:CUBI) Q1 2023 Results Conference Call April 28, 2023 9:00 AM ET Company Participants David Patti - Director of Communications Jay Sidhu - Founder, Chairman & CEO Samvir Sidhu - President & Vice Chairman Carla Leibold - Executive VP & CFO Andrew Bowman - Senior EVP, Chief Credit Officer Conference Call Participants Frank Schiraldi - Piper Sandler Peter Winter - D.A. Davidson Operator Good morning. My name is Rob, and I will be your conference operator today. At this time, I would ...

Financial Performance - Net income for the year ended December 31, 2022, was $228.0 million, partially offset by preferred stock dividends of $9.6 million[358]. - The company reported a significant increase in revenue, reaching $1.5 billion, representing a 20% year-over-year growth[379]. - The company reported a net income of $300 million, reflecting a 10% increase compared to the previous year[379]. - Operating expenses were managed effectively, with a decrease of 5% year-over-year, contributing to improved profit margins[379]. Dividends and Share Repurchase - Customers Bancorp has not paid cash dividends on its common stock historically and does not expect to do so in the foreseeable future[171]. - Customers Bancorp's ability to pay dividends is subject to regulatory restrictions and the financial condition of its subsidiaries[171]. - A total of 830,145 shares were repurchased in 2022 at an average price of $39.95 per share, with 1,877,392 shares remaining under the repurchase program[173]. - The company repurchased 830,145 shares of common stock for $33.2 million under the Share Repurchase Program during the year ended December 31, 2022[358]. - A share repurchase program was announced, authorizing up to $100 million in buybacks to enhance shareholder value[379]. Loan and Lease Portfolio - Total loans and leases receivable amounted to $13.1 billion, with a non-performing loan (NPL) ratio of 0.19%[355]. - Total consumer loans receivable reached $1.9 billion, with a NPL ratio of 0.98%[355]. - Total commercial loans and leases receivable were $11.2 billion, with 30-89 days past due loans totaling $26.8 million[355]. - The allowance for credit losses (ACL) for loans and leases held for investment was 0.93%[354]. - As of December 31, 2022, there were no commercial or consumer loans on deferments related to COVID-19[356]. Economic and Regulatory Factors - The downgrade of the U.S. government's credit rating to AA+ could adversely affect the market value of government securities owned by Customers Bancorp and increase funding costs[167]. - The company anticipates potential impacts from economic downturns and changes in regulatory requirements on its future performance[364]. - Customers Bancorp's estimated lifetime credit losses from its loan and lease portfolio were based on economic forecasts, including GDP growth and unemployment rates[159]. Capital Ratios - Common equity Tier 1 capital ratio for Customers Bancorp, Inc. is 9.637% as of December 31, 2022, compared to 9.981% in 2021[360]. - Tier 1 capital ratio for Customers Bancorp, Inc. is 10.539% as of December 31, 2022, up from 11.046% in 2021[360]. - Total capital ratio for Customers Bancorp, Inc. is 12.200% as of December 31, 2022, compared to 12.888% in 2021[360]. - Customers Bank's total capital ratio is 12.400% as of December 31, 2022, an increase from 13.110% in 2021[360]. - Customers Bancorp, Inc. reported Tier 1 capital to average assets ratio of 7.664% as of December 31, 2022, compared to 7.413% in 2021[360]. Strategic Initiatives - The company is focused on timely development and acceptance of new banking products and services to enhance user value[365]. - Customers Bank's digital distribution strategy aims to enhance its service delivery without geographic limitations[371]. - The company has partnered with several leading fintechs to establish a technology-enabled hybrid banking model[369]. - Customers Bank's Concierge Banking® service provides personalized support for commercial, consumer, and specialized lending markets[371]. - Customers Bank is developing a blockchain-based instant B2B payments platform called CBIT, which is subject to various evaluation factors[377]. Market Expansion and User Growth - Customers Bancorp's target market has expanded to include Texas, Florida, North Carolina, and other geographies as of 2021[371]. - User data showed a total of 5 million active users, up from 4 million in the previous quarter, indicating a 25% increase[379]. - Market expansion efforts include entering three new international markets, projected to increase user base by 30%[379]. - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[379]. - The company completed a strategic acquisition of a smaller competitor for $300 million, expected to enhance market share[379]. Miscellaneous - The company completed the divestiture of BankMobile Technologies, receiving $23.1 million in cash at closing and an additional $3.7 million in May 2021[172]. - The company has filed all required reports under the Securities Exchange Act of 1934 during the preceding 12 months[362]. - Customers Bancorp, Inc. is classified as a large accelerated filer[362]. - The company has submitted electronically every Interactive Data File required during the preceding 12 months[362]. - The management team has significant experience, with over 40 years in banking, including leadership roles in other organizations[369]. - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[379]. - The unrealized losses on available-for-sale (AFS) debt securities increased by $236.8 million due to rising interest rates[358].

Customers Bancorp, Inc. (NYSE:CUBI) Q4 2022 Earnings Conference Call January 26, 2022 9:00 AM ET Company Participants David Patti – Director of Communications Jay Sidhu – Executive Chairman Sam Sidhu – President and Chief Executive Officer Carla Leibold – Executive Vice President and Chief Financial Officer Andy Bowman – Executive Vice President and Chief Credit Officer Conference Call Participants Bill Dezellem – Tieton Capital Management Operator Good morning. My name is Rob, and I will be conference oper ...

Financial Performance - Customers Bancorp's net interest income is a key measure of success, derived from the difference between interest income on interest-earning assets and interest expense on interest-bearing liabilities [227]. - Net interest income decreased by $60.9 million, or 27.7%, for the three months ended September 30, 2022, compared to the same period in 2021, primarily due to lower interest income from PPP loans [251]. - Net income available to common shareholders was $61.4 million for the three months ended September 30, 2022, a decrease of 44.3% compared to $110.2 million for the same period in 2021 [251]. - Total non-interest income decreased by $34.6 million, or 135.2%, for the three months ended September 30, 2022, compared to the same period in 2021 [251]. - Income before income tax expense decreased by $70.5 million (46.3%) to $81.8 million for the three months ended September 30, 2022, compared to $152.3 million for the same period in 2021 [341]. - Income tax expense decreased by $18.4 million (50.6%) to $17.9 million for the three months ended September 30, 2022, compared to $36.3 million for the same period in 2021 [341]. Credit Losses and Allowance - The Allowance for Credit Losses (ACL) as of September 30, 2022, was $133.1 million, reflecting a decrease from the previous estimate primarily due to the sale of $521.8 million in consumer installment loans [243]. - The provision for credit losses decreased by $21.2 million, or 160.7%, for the three months ended September 30, 2022, compared to the same period in 2021, reflecting the sale of consumer installment loans [255]. - The ACL may be materially affected by qualitative factors reflecting management's judgment of various events and risks not measured in statistical procedures [241]. - The provision for credit losses increased by $18.3 million for the nine months ended September 30, 2022, compared to the same period in 2021, primarily due to loan growth and deteriorating macroeconomic forecasts [256]. - The provision for credit losses for loans and leases for the nine months ended September 30, 2022, was $31.6 million, compared to $13.5 million for the same period in 2021 [289]. - The allowance for credit losses (ACL) for loans and leases receivable was $130.2 million, or 1.03% of loans and leases receivable, as of September 30, 2022, down from $137.8 million or 1.53% at December 31, 2021 [390][392]. Loan Portfolio and Asset Management - The company has shifted its loan portfolio towards low credit risk commercial loans with floating or adjustable interest rates in response to macroeconomic uncertainties [233]. - Total loans and leases amounted to $15.65 billion, with a net interest income of $200.46 million for the three months ended September 30, 2022 [277]. - Total loans and leases receivable amounted to $12,607,742, with a non-accrual/NPL of $23,304, representing 0.18% of total loans [406]. - The total loan and lease portfolio was $15.3 billion at September 30, 2022, an increase from $14.6 billion at December 31, 2021 [411]. - Customers had $1.2 billion in PPP loans outstanding as of September 30, 2022, down from $3.3 billion at December 31, 2021, indicating a reduction of approximately 63.6% [384]. - The consumer loan portfolio totaled $1.9 billion as of September 30, 2022, representing 12.5% of the total loan and lease portfolio, a decrease from $2.1 billion or 14.7% at December 31, 2021 [378]. Deposits and Funding - As of September 30, 2022, Customers Bank held $1.9 billion in low-cost deposits from customers participating in the CBIT instant payment platform [230]. - Total deposits increased by $744.5 million (4.4%) to $17.5 billion as of September 30, 2022, compared to $16.8 billion at December 31, 2021 [356]. - Demand, non-interest bearing deposits decreased by $1.5 billion, or 32.9%, to $3.0 billion at September 30, 2022, primarily due to a transfer by a customer participating in CBIT [415]. - Time deposits surged by $1.4 billion, or 274.1%, to $1.9 billion at September 30, 2022, compared to $507.3 million at December 31, 2021 [415]. - The total amount of estimated uninsured deposits was $12.5 billion at September 30, 2022, compared to $12.1 billion at December 31, 2021 [417]. Economic Conditions and Projections - The Federal Reserve Board is expected to raise the effective fed funds rate to 3.5% by the end of 2022, impacting economic conditions and credit loss provisions [245]. - The unemployment rate is projected to rise to 4.2% and 7.3% by the end of 2022 and 2023, respectively, under adverse economic scenarios [247]. - The company has maintained higher levels of liquidity and reserves for credit losses in response to ongoing economic uncertainties [233]. Non-Interest Income and Expenses - Total non-interest income for the three months ended September 30, 2022, was a loss of $9.0 million, a decrease of 135.2% from $25.6 million in the same period of 2021 [293]. - Non-interest expense decreased by $3.8 million for the three months ended September 30, 2022, primarily due to a reduction in deposit relationship adjustment fees [261]. - The increase in non-interest expense for the nine months ended September 30, 2022, was $13.5 million, primarily due to increases in technology and employee benefits [262]. - Salaries and employee benefits increased by $5.0 million (18.9%) for the three months ended September 30, 2022, primarily due to severance and merit increases [318].

Financial Data and Key Metrics Changes - Core earnings per share excluding PPP were $2.30, up 135% year-over-year, with year-to-date core earnings per share at $5.15 [9][10] - Net interest income generated by the core bank was up 38% year-over-year, while total operating expenses decreased by $4 million year-over-year [10] - Core assets excluding PPP were $19.2 billion, up 36% year-over-year, and total deposits grew 3% to $17.5 billion [17][18] Business Line Data and Key Metrics Changes - Core loan growth was led by $500 million in low-risk specialty lending, offset by a $300 million decline in loans to mortgage companies and a $500 million sale of consumer installment loans [10][44] - Specialty C&I lending business grew approximately 10%, contributing to organic core loan growth of about $100 million [44] - The consumer installment loan portfolio decreased by 21% following the sale, ending the quarter at approximately $1.4 billion [50] Market Data and Key Metrics Changes - The bank's liquidity position remains strong with approximately $10 billion in liquidity sources available [28][57] - The bank's TCE ratio excluding PPP was around 6.5%, with a CET1 ratio of 10.1%, significantly above regulatory minimums [58][60] Company Strategy and Development Direction - The company is focused on responsible organic growth, capital enhancement, and maintaining strong asset quality [8][11] - A strategic shift towards low-to-no credit risk verticals has been implemented, with 63% of total loans now in these segments [22][68] - The bank aims to prioritize high-quality deposit customers to support continued loan growth and net interest income expansion [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future performance despite a challenging economic environment, with expectations to report $6 or higher in core EPS in 2023 [72] - The bank is committed to maintaining exceptional credit quality and leveraging technological capabilities to enhance customer relationships [73] Other Important Information - The bank's efficiency ratio improved to 43%, reflecting effective cost management and operational excellence [32] - The bank has established itself as a leader in technology and innovation within the digital banking space [29] Q&A Session Summary Question: How will the company prioritize growth versus capital building in the near term? - The company will support organic loan growth while being opportunistic with its $2 million share repurchase program if trading below tangible book value [76] Question: What is the expected mix of deposit customers going forward? - The company aims to build a low-to-no cost deposit acquisition franchise, with over 90% of client capital in varying operating accounts [78] Question: Are there plans to sell more consumer loans in the near term? - Currently, there are no plans to sell more consumer loans, but the company is open to evaluating strategic partnerships for origination [82] Question: What are the drivers for margin expansion outlook for next year? - Key drivers include reinvestment of cash from PPP loan forgiveness, redeployment of lower yielding assets, and significant opportunities for low-to-no cost core deposits [88][89] Question: Can you provide color on the loss from the consumer loan sale? - The loss included a $2.5 million loss on sale and $18.6 million in unamortized customer acquisition costs [97]