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]

下了了了了了了了了了了了 | --- | --- | --- | |------------------------------------------|-------|--------------| | | | | | "A Digital-Forward Super-Community Bank" | | | | Investor Presentation: Q3 2022 | | October 2022 | Forward-Looking Statements In addition to historical information, this presentation 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 C ...

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 June 30, 2022 ☐ 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. Pennsylvania 27-2290659 (State or ot ...

Financial Data and Key Metrics Changes - Core earnings per share, excluding PPP, increased by 32.3% year-over-year, with a core return on average assets of 1.23% and a core return on common equity of 19.1% [9] - Core assets, excluding PPP, reached $18.7 billion, up 40% year-over-year, while total deposits grew by 22% or $3.1 billion year-over-year [15][37] - Net interest margin for the quarter was $3.32, with expectations for the second half of the year to be between 3% and 3.25% [14][42] Business Line Data and Key Metrics Changes - Core loans increased by $2.2 billion in the second quarter, up 18.7% from the first quarter, primarily in low-risk specialty lending verticals [10][30] - Specialty lending C&I verticals ended the quarter at $4.8 billion, showing 50% growth quarter-over-quarter and 192% year-over-year [38] - The multifamily book grew by 18% quarter-over-quarter, while SBA production increased by 29% quarter-over-quarter and 88% year-over-year [18] Market Data and Key Metrics Changes - The company reported strong customer growth in its digital asset banking segment, with 90 new customers onboarded, bringing the total to 190 [32] - Total CBIT-related deposits reached $2.1 billion in the quarter, with significant growth driven by new customers [33] - Demand deposits increased by 64% year-over-year, reflecting a shift towards non-interest bearing deposits [40] Company Strategy and Development Direction - The company is focused on building a digital-first community bank with an emphasis on community banking, specialty banking, and digital banking [12] - Strategic initiatives include enhancing digital capabilities, maintaining a margin of 3% to 3.25%, and reorganizing operations to support digital technology [60][61] - The company aims to maintain above-average loan and deposit growth while ensuring exceptional credit quality [62] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about inflation and higher rates but noted that consumers believe they can manage these challenges [56] - The mortgage market is experiencing significant declines, with expectations of continued challenges in the second half of the year [57] - The company remains committed to meeting or exceeding EPS goals for 2022 and 2023 [61] Other Important Information - The company has proactively tightened credit underwriting and shifted loan growth mix to maintain a strong credit profile [16] - The reserve build in Q2 was primarily due to strong loan growth, resulting in a coverage ratio of 1.28% [55] - The company expects its tangible book value to remain above $40 by the end of 2022 [48] Q&A Session Summary Question: Margin outlook for the second half of the year - Management indicated that the decrease in margin to 3% to 3.25% is due to the increase in low credit risk, variable rate portfolios [66] Question: Outlook for deposit growth in the second half of the year - Management expects to continue improving the deposit mix and gathering low to no cost deposits through technology initiatives [67] Question: Loan growth guidance - Management maintained a quarterly average loan guidance of $500 million despite strong growth, citing stabilization in certain verticals [70] Question: Digital asset lending appetite - Management remains cautious but sees digital asset lending as an important product for their banking customers [78] Question: Operating expenses outlook - Management provided guidance on an efficiency ratio of plus or minus 45% for the back half of the year [82]

下了了了了了了了了了了了 | --- | --- | --- | |------------------------------------------|-------|-----------| | | | | | | | | | | | | | Let's take on tomorrow. | | | | "A Digital-Forward Super-Community Bank" | | | | Investor Presentation: Q2 2022 | | July 2022 | Forward-Looking Statements In addition to historical information, this presentation 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 state ...

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, 2022 ☐ 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. Pennsylvania 27-2290659 (State or o ...