Core Viewpoint - Customers Bancorp, Inc. is facing a class action securities lawsuit due to alleged securities fraud that occurred between March 1, 2024, and August 8, 2024 [1][2] Group 1: Lawsuit Details - The lawsuit claims that Customers Bancorp had inadequate anti-money laundering practices, leading to non-compliance with legal obligations and increased regulatory risk [2] - Defendants are accused of making materially false and misleading statements regarding the company's business, operations, and prospects [2] Group 2: Investor Information - Investors who suffered losses during the specified timeframe have until January 31, 2025, to request appointment as lead plaintiff, although participation in any recovery does not require this [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Group 3: Legal Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [4] - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the leading securities litigation firms in the U.S. [4]

Core Viewpoint - Customers Bancorp (CUBI) reported quarterly earnings of $1.36 per share, exceeding the Zacks Consensus Estimate of $1.24 per share, but down from $1.90 per share a year ago, indicating a 28.42% year-over-year decline [1][2] Financial Performance - The company achieved revenues of $167.43 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 8.75% and down from $191.18 million year-over-year, reflecting a 12.31% decrease [2] - Over the last four quarters, Customers Bancorp has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Customers Bancorp shares have increased approximately 3% since the beginning of the year, compared to the S&P 500's gain of 3.5% [3] - The current consensus EPS estimate for the upcoming quarter is $1.28 on revenues of $188.67 million, and for the current fiscal year, it is $6.19 on revenues of $805.25 million [7] Industry Context - The Banks - Southeast industry, to which Customers Bancorp belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of Customers Bancorp's stock may be influenced by the overall industry outlook and trends in earnings estimate revisions [5][8]

Net Income and Earnings - Q4 2024 net income available to common shareholders was $23.3 million, or $0.71 per diluted share, with ROAA of 0.48% and ROCE of 5.50%[2] - Q4 2024 core earnings were $44.2 million, or $1.36 per diluted share, with Core ROAA of 0.86% and Core ROCE of 10.44%[2] - 2024 net income available to common shareholders was $166.4 million, or $5.09 per diluted share, with ROAA of 0.85% and ROCE of 10.36%[4] - Net income available for common shareholders decreased by 45.8% to $23,266 thousand in Q4 2024 compared to $42,937 thousand in Q3 2024[9] - Core earnings increased by 0.8% to $44,168 thousand in Q4 2024 compared to $43,838 thousand in Q3 2024[9] - Adjusted core earnings increased by 6.7% to $44,168 thousand in Q4 2024 compared to $41,381 thousand in Q3 2024[9] - Net income available for common shareholders decreased by 60.0% to $23,266 thousand in Q4 2024 compared to $58,223 thousand in Q4 2023[12] - Core earnings decreased by 28.3% to $44,168 thousand in Q4 2024 compared to $61,633 thousand in Q4 2023[12] - Adjusted core earnings decreased by 28.3% to $44,168 thousand in Q4 2024 compared to $61,633 thousand in Q4 2023[12] - Net income available to common shareholders for Q4 2024 was $23.3 million, a significant drop from $58.2 million in Q4 2023[61] - Earnings per share (diluted) for Q4 2024 were $0.71, compared to $1.79 in Q4 2023[61] - Core earnings for Q4 2024 were $44.2 million, compared to $61.6 million in Q4 2023[61] - GAAP net income to common shareholders for Q4 2024 was $23.3 million, or $0.71 per share, compared to $58.2 million, or $1.79 per share, in Q4 2023[83] - Core earnings for Q4 2024 were $44.2 million, or $1.36 per share, compared to $61.6 million, or $1.90 per share, in Q4 2023[83] - Adjusted core earnings for Q4 2024 were $44.2 million, or $1.36 per share, compared to $61.6 million, or $1.90 per share, in Q4 2023[83] - Core net income for Q4 2024 was $47.8 million, compared to $65.5 million in Q4 2023[84] - Adjusted core net income for Q4 2024 was $47.8 million, compared to $65.5 million in Q4 2023[84] - Core earnings for Q4 2024 were $44.2 million, down from $61.6 million in Q4 2023[87] - Adjusted core earnings for 2024 were $189.3 million, compared to $248.2 million in 2023[87] - GAAP net income to common shareholders for Q4 2024 was $23.3 million, compared to $58.2 million in Q4 2023[88] Loan and Lease Growth - Total loans and leases held for investment grew by $671.1 million in Q4 2024, representing a 19% annualized growth rate[2] - Total loans and leases held for investment grew by $1.6 billion or 12.3% from December 31, 2023 to December 31, 2024[4] - Total loans and leases increased by 4.3% to $14,653,556 thousand in Q4 2024 compared to $14,053,116 thousand in Q3 2024[9] - Total loans and leases grew by $1.45 billion (11.0%) to $14.65 billion in 2024, driven by increases in commercial and multifamily loans[14] - Loans and leases held for investment increased by $671.1 million (4.9%) to $14.45 billion in Q4 2024, with specialized lending up $373.9 million (6.8%)[18] - Year-over-year, loans and leases held for investment grew by $1.6 billion (12.3%), with specialized lending increasing $835.7 million (16.7%)[19] - Loans held for sale decreased by $70.6 million to $204.8 million in Q4 2024, reflecting reduced demand in certain loan categories[20] - Total loans and leases held for investment increased to $14,448,762 in December 2024, up from $12,861,767 in December 2023[73] - Total loans and leases portfolio increased to $14,653,556 thousand as of December 31, 2024, up from $13,202,084 thousand in December 2023, reflecting growth in the loan portfolio[75] Deposit Growth - Total deposits increased by $777.1 million or 4.3% in Q4 2024, with non-interest bearing demand deposits up $937.5 million or 20.1%[2] - Non-interest bearing demand deposits increased $1.2 billion, or 26.8%, from December 31, 2023 to December 31, 2024[4] - Non-interest bearing demand deposits increased by 20.1% to $5,608,288 thousand in Q4 2024 compared to $4,670,809 thousand in Q3 2024[9] - Non-interest bearing demand deposits rose by $1.19 billion (26.8%) to $5.61 billion in 2024, reflecting strong customer deposit growth[14] - Total deposits increased by $777.1 million (4.3%) to $18.8 billion at December 31, 2024, compared to the prior quarter, driven by a 20.1% increase in non-interest bearing demand deposits[33] - Total deposits grew to $18,846,461 in December 2024, compared to $17,920,236 in December 2023[74] - Total deposits increased to $18,846,461 thousand in December 2024, compared to $17,920,236 thousand in December 2023[66] - Non-interest-bearing deposits increased to $5,608,288 in December 2024 from $4,422,494 in December 2023[74] Net Interest Margin and Income - Q4 2024 net interest margin (NIM) was 3.11%, up 5 basis points from Q3 2024, primarily due to lower deposit costs[2] - Net interest income totaled $167.8 million in Q4 2024, an increase of $9.3 million from Q3 2024[43] - Total cost of deposits declined by 39 basis points during Q4 2024[44] - Net interest income rose to $167,821 thousand in Q4 2024, compared to $158,545 thousand in Q3 2024 and $172,506 thousand in Q4 2023[67] - Net interest margin improved to 3.10% in Q4 2024, up from 3.05% in Q3 2024 but down from 3.30% in Q4 2023[67] - Tax-equivalent net interest margin was 3.11% in Q4 2024, up from 3.06% in Q3 2024 but down from 3.31% in Q4 2023[69] - Net interest income decreased to $654,404 in 2024 from $687,449 in 2023[70] - Net interest margin decreased to 3.14% in 2024 from 3.28% in 2023[70] Asset Quality and Credit Losses - Ratio of non-performing assets to total assets was 0.25% at December 31, 2024, compared to 0.22% at September 30, 2024[2] - Net charge-offs decreased to $14.6 million in Q4 2024, down from $17.0 million in Q3 2024 and $17.3 million in Q4 2023[21] - Provision for credit losses on loans and leases was $18.2 million in Q4 2024, up from $17.8 million in Q3 2024 due to macroeconomic forecast adjustments[22] - Provision for credit losses on available-for-sale securities was $3.0 million in Q4 2024, compared to a benefit of $0.7 million in Q3 2024[23] - Total provision for credit losses increased by $7.14 million to $20.53 million in Q4 2024, driven by higher commercial loan balances and macroeconomic factors[24] - Non-performing loans decreased to 0.30% of total loans and leases at December 31, 2024, compared to 0.34% at September 30, 2024, and increased from 0.21% at December 31, 2023[29] - Net charge-offs for Q4 2024 were $14.6 million, with an annualized rate of 0.41% of average total loans and leases[61] - Non-performing loans (NPLs) to total loans and leases stood at 0.30% in Q4 2024, up from 0.21% in Q4 2023[61] - Allowance for credit losses as a percentage of total loans decreased to 0.93% in December 2024 from 1.02% in December 2023, indicating improved asset quality[75] - Total net charge-offs from loans held for investment were $68,335 thousand for the twelve months ended December 31, 2024, slightly lower than $69,035 thousand in the same period in 2023[79] - Non-accrual loans and NPLs to total loans increased to 0.30% in December 2024 from 0.21% in December 2023, with reserves to total NPLs at 316.06%[77] Capital and Equity - CET 1 ratio was 12.0% at December 31, 2024, compared to 12.5% at September 30, 2024[2] - Common equity increased by 2.1% to $1,698,889 thousand in Q4 2024 compared to $1,663,386 thousand in Q3 2024[9] - Common equity increased by $35.5 million to $1.7 billion at December 31, 2024, driven by earnings of $23.3 million and decreased unrealized losses on investment securities[39] - The CET 1 capital ratio was 12.0% at December 31, 2024, compared to 12.5% at September 30, 2024, and 12.2% at December 31, 2023[37] - The total risk-based capital ratio was 14.8% at December 31, 2024, compared to 15.4% at September 30, 2024, and 15.3% at December 31, 2023[37] - Book value per common share increased to $54.20 at December 31, 2024, from $53.07 at September 30, 2024, and $47.73 at December 31, 2023[37] - CET 1 ratio at Customers Bancorp level was 12.0% at December 31, 2024[41] - Common equity Tier 1 capital to risk-weighted assets was 12.9% in Q4 2024, down from 13.77% in Q4 2023[61] - Tier 1 capital to average assets (leverage ratio) was 8.7% in Q4 2024, slightly down from 8.71% in Q4 2023[61] - Tangible common equity to tangible assets ratio for Q4 2024 was 7.6%, slightly lower than Q3 2024's 7.7%[94] - Tangible book value per common share increased to $54.08 in Q4 2024, up from $52.96 in Q3 2024[95] - Tangible common equity for Q4 2024 was $1.70 billion, up from $1.66 billion in Q3 2024[94] Non-Interest Income and Expenses - Non-interest income totaled a loss of $0.4 million for Q4 2024, a decrease of $19.1 million compared to Q4 2023[47] - Non-interest expenses totaled $110.4 million in Q4 2024, an increase of $16.6 million compared to Q4 2023[50] - Total one-time non-interest expense items recorded in 2024 were $6.1 million, or $0.19 per share[83] - Core non-interest expense for Q4 2024 was $108.57 million, a decrease from $110.38 million in GAAP non-interest expense after adjustments[93] - Adjusted core non-interest expense to average total assets for Q4 2024 was 1.95%, consistent with the core non-interest expense ratio[93] - Total one-time non-interest expense items recorded in 2024 amounted to $8.32 million, primarily due to deposit servicing fees and FDIC premiums[93] - Core non-interest expense to average total assets for the full year 2024 was 1.92%, compared to 1.62% in 2023[93] Future Outlook - Customers Bancorp expects deposit growth of 5% to 9% during 2025[53] - Customers Bancorp targets to increase the loan portfolio by about 7% to 10% in 2025[53] - Customers Bancorp expects net interest income to increase between 3% to 7% in 2025[53] - Customers Bancorp expects an effective tax rate to be between 22% to 25% in 2025[53] Other Financial Metrics - Total assets grew by 4.0% to $22,308,241 thousand in Q4 2024 compared to $21,456,082 thousand in Q3 2024[9] - Total assets increased by $991.98 million (4.7%) to $22.31 billion as of December 31, 2024, compared to $21.32 billion in 2023[14] - Total assets increased to $22,308,241 thousand in December 2024, up from $21,316,265 thousand in December 2023[66] - Average total assets for Q4 2024 were $22.2 billion, compared to $21.3 billion in Q4 2023[84] - Average total assets for 2024 were $21.4 billion, slightly higher than $21.5 billion in 2023[86] - Average total assets for Q4 2024 were $22.18 billion, showing growth from $21.23 billion in Q3 2024[93] - Tangible assets for Q4 2024 were $22.30 billion, slightly higher than Q3 2024's $21.45 billion[94] - Common shares outstanding in Q4 2024 were 31.35 million, a slight decrease from 31.34 million in Q3 2024[95]

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Customers Bancorp, Inc. due to allegations of violations of federal securities laws related to inadequate anti-money laundering practices and subsequent regulatory risks [2][3]. Group 1: Legal Investigation and Class Action - The firm is reminding investors of the January 31, 2025 deadline to seek the role of lead plaintiff in a federal securities class action against Customers Bancorp [2]. - The complaint alleges that Customers Bancorp and its executives made false or misleading statements regarding the company's compliance with anti-money laundering laws, which led to significant investor losses when the truth was revealed [3][5]. - The court-appointed lead plaintiff is defined as the investor with the largest financial interest in the relief sought, who will oversee the litigation on behalf of the class [6]. Group 2: Regulatory Issues and Stock Impact - On August 8, 2024, the Federal Reserve Board announced an enforcement action against Customers Bancorp, citing significant deficiencies in the bank's risk management and compliance with anti-money laundering regulations [4][5]. - Following the announcement, Customers Bancorp's common stock experienced a decline of 13.3% on the same day [5]. Group 3: Call for Information - Faruqi & Faruqi encourages anyone with information regarding Customers Bancorp's conduct, including whistleblowers and former employees, to contact the firm [7].

Core Points - The Gross Law Firm has issued a notice to shareholders of Customers Bancorp, Inc. regarding a class action lawsuit [1] - The class period for the lawsuit is from March 1, 2024, to August 8, 2024 [3] - Allegations include inadequate anti-money laundering practices and non-compliance with legal obligations, leading to heightened regulatory risk [3] Summary by Sections Class Action Details - Shareholders who purchased shares during the specified class period are encouraged to contact the firm for possible lead plaintiff appointment [1][4] - The deadline for shareholders to register for the class action is January 31, 2025 [4] Allegations Against Customers Bancorp - The complaint alleges that Customers Bancorp issued materially false and misleading statements regarding its business operations and compliance [3] - Specific allegations include inadequate anti-money laundering practices and failure to disclose compliance issues, which misled investors about the company's prospects [3] Next Steps for Shareholders - Registered shareholders will be enrolled in a portfolio monitoring software to receive updates on the case [4] - Participation in the case incurs no cost or obligation for shareholders [4] About the Gross Law Firm - The Gross Law Firm is a nationally recognized class action law firm focused on protecting investors' rights against deceit and fraud [5] - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors affected by misleading statements [5]

Core Viewpoint - Customers Bancorp, Inc. stockholders who have incurred losses are being alerted to the opportunity to lead a class action lawsuit against the company [1] Group 1 - The law firm Bronstein, Gewirtz and Grossman, LLC is announcing the potential for a class action lawsuit for Customers Bancorp, Inc. stockholders [1] - Stockholders are encouraged to participate if they have experienced financial losses related to their investment in Customers Bancorp, Inc. [1] - The announcement highlights the legal recourse available to affected stockholders, emphasizing the importance of taking action [1]

CUBI IMPORTANT DEADLINE: ROSEN, RECOGNIZED INVESTOR COUNSEL, Encourages Customers Bancorp, Inc. Investors to Secure Counsel Before Important January 31 Deadline in Securities Class Action First Filed by the Firm – CUBI ...

Core Viewpoint - Analysts project that Customers Bancorp (CUBI) will report quarterly earnings of $1.24 per share, reflecting a year-over-year decline of 34.7%, with revenues expected to be $183.48 million, down 4% from the same quarter last year [1] Earnings Estimates - There has been no revision in the consensus EPS estimate for the quarter over the last 30 days, indicating analysts' collective reassessment of their initial forecasts [1][2] - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [2] Key Metrics Forecast - Analysts estimate the 'Efficiency Ratio' to be 57.9%, up from 49.1% a year ago [4] - 'Net Interest Margin' is projected to reach 3.1%, compared to 3.3% in the previous year [4] - 'Average Interest-Earning Assets' are expected to be $21.00 billion, an increase from $20.80 billion reported in the same quarter last year [4] Income Projections - 'Total Non-Interest Income' is forecasted to be $22.09 million, up from $18.67 million a year ago [5] - 'Net interest income tax equivalent' is expected to reach $161.28 million, down from $172.90 million in the same quarter of the previous year [5] - 'Net Interest Income' is projected at $162.21 million, compared to $172.51 million a year ago [6] - 'Commercial lease income' is expected to be $10.10 million, up from $9.04 million last year [6] - 'Loan fees' are projected to reach $6.47 million, compared to $5.93 million in the same quarter last year [6] Stock Performance - Shares of Customers Bancorp have increased by 4.8% over the past month, contrasting with a -0.4% change in the Zacks S&P 500 composite [7] - With a Zacks Rank 4 (Sell), CUBI is anticipated to underperform the overall market in the near future [7]

Levi & Korsinsky Announces the Filing of a Securities Class Action on Behalf of Customers Bancorp, Inc.(CUBI) Shareholders ...

CUBI SHAREHOLDER ALERT: Bronstein, Gewirtz and Grossman, LLC Announces that Customers Bancorp, Inc. Shareholders with Losses Have Opportunity to Lead Class Action Lawsuit! ...