Customers Bancorp(CUBI) - 2025 Q1 - Quarterly Results

Financial Performance - Q1 2025 net income available to common shareholders was $9.5 million, or $0.29 per diluted share, a decrease of 59.1% from Q4 2024[3] - Core earnings for Q1 2025 were $50.0 million, or $1.54 per diluted share, representing a 13.2% increase from Q4 2024[3] - Net income available for common shareholders decreased to $9.5 million, down 79.3% from $45.9 million year-over-year[12] - GAAP net income for Q1 2025 was $9,523,000, translating to $0.29 per share, a decrease from $23,266,000 ($0.71 per share) in Q4 2024[77] - Core earnings for Q1 2025 increased to $50,002,000, or $1.54 per share, compared to $44,168,000 ($1.36 per share) in Q4 2024, representing a 4% increase[77] Asset and Loan Growth - Total assets increased by $1.1 billion, or 5.0%, to $22.4 billion compared to the previous year[12] - Total loans and leases reached $15.1 billion, up $2.2 billion, or 16.8%, year-over-year[16] - Total loans and leases held for investment grew by $611.7 million, or 4.2%, in Q1 2025 from Q4 2024[3] - Loans and leases receivable, net of allowance for credit losses, reached $14,919,363 thousand as of March 31, 2025, up from $14,311,987 thousand in Q4 2024, marking a growth of 4.2%[66] Deposit Trends - Total deposits increased by $86.5 million, or 0.5%, in Q1 2025 from Q4 2024[3] - Total deposits increased to $18,932,925 thousand as of March 31, 2025, compared to $18,846,461 thousand at the end of Q4 2024, reflecting a growth of 0.5%[66] - Money market deposits rose by $213.0 million, or 5.5%, to $4.1 billion, while savings deposits increased by $196.0 million, or 17.3%, to $1.3 billion[29] Credit Quality and Losses - Provision for credit losses was $28.3 million in Q1 2025, up from $21.2 million in Q4 2024[3] - The allowance for credit losses on loans and leases was $141.1 million, an increase of $4.3 million from the previous quarter[18] - Net charge-offs increased to $17.1 million in Q1 2025, compared to $14.6 million in Q4 2024[18] - Non-performing loans (NPLs) as of March 31, 2025, were $43.5 million, slightly up from $43.3 million at December 31, 2024, and increased from $35.7 million a year ago[22] Capital Ratios - Common Equity Tier 1 (CET 1) ratio was 11.7% at March 31, 2025, down from 12.1% at December 31, 2024[3] - Common equity Tier 1 capital ratio decreased to 11.7%, down from 12.6% year-over-year[12] - The CET 1 capital ratio was estimated at 11.7% and the total risk-based capital ratio at 14.6% as of March 31, 2025[38] Efficiency and Cost Management - The efficiency ratio improved to 52.94%, down from 54.58% year-over-year[12] - Non-interest expenses totaled $102.8 million in Q1 2025, a decrease of $7.6 million compared to Q4 2024, primarily due to lower salaries and employee benefits[47] - The core efficiency ratio improved to 52.69% in Q1 2025 from 56.12% in Q4 2024[84] Interest Income and Margin - Net interest income totaled $167.4 million in Q1 2025, a decrease of $0.4 million from Q4 2024, but an increase of $7.1 million from Q1 2024[39][42] - Net interest margin (NIM) increased by 2 basis points to 3.13% in Q1 2025 from 3.11% in Q4 2024[3] - Total interest income for Q1 2025 was $314,909 thousand, a decrease of 4.5% from Q4 2024's $329,906 thousand[65] Stock Performance - The stock price as a percentage of book value was 92% in Q1 2025, up from 90% in Q4 2024[62] - Book value per common share increased by $5.56, or 11.3%, to $54.85[12] Company Recognition - Customers Bancorp, Inc. ranked No. 1 on American Banker’s 2024 list of top-performing banks with $10B to $50B in assets[59]