Customers Bancorp(US:CUBI)2025-05-09 20:37Financial Performance - Net interest income for the three months ended March 31, 2025, was $167,446 thousand, up from $160,385 thousand in the same period of 2024, representing an increase of 4.0%[17] - Net income available to common shareholders decreased to $9,523 thousand for the three months ended March 31, 2025, down from $45,926 thousand in the same period of 2024, a decline of 79.3%[17] - Basic earnings per common share fell to $0.30 for the first quarter of 2025, compared to $1.46 for the same quarter in 2024, a decrease of 79.5%[17] - Comprehensive income for the three months ended March 31, 2025, was $41,831 thousand, compared to $53,990 thousand in the same period of 2024, a decrease of 22.5%[18] - Net income for the three months ended March 31, 2025, was $12,912 thousand, a decrease of 74% compared to $49,726 thousand for the same period in 2024[23] Credit Losses and Provisions - Provision for credit losses rose to $28,297 thousand for the first quarter of 2025, compared to $17,070 thousand in the first quarter of 2024, indicating a significant increase of 65.7%[17] - The allowance for credit losses on loans and leases was $141,076 thousand as of March 31, 2025, compared to $136,775 thousand at December 31, 2024, reflecting an increase of 3.4%[16] - Provision for credit losses increased to $28,297 thousand in Q1 2025 from $17,070 thousand in Q1 2024, indicating a rise in expected credit losses[23] - The allowance for credit losses (ACL) on loans and leases increased for the three months ended March 31, 2025, reflecting changes in credit quality across various loan types[69] - The total charge-offs for the three months ended March 31, 2025, were $20.8 million, compared to $22.8 million for the same period in 2024[71] Assets and Liabilities - Total assets increased to $22,423,044 thousand as of March 31, 2025, compared to $22,308,241 thousand at December 31, 2024, reflecting a growth of 0.5%[16] - The total shareholders' equity increased to $1,864,560 thousand as of March 31, 2025, from $1,691,617 thousand as of March 31, 2024[20] - The balance of accumulated other comprehensive income (loss) was $(67,641) thousand as of March 31, 2025, compared to $(132,305) thousand as of March 31, 2024[20] - The total estimated fair value of liabilities, including deposits, is $18,939,936 as of March 31, 2025, slightly up from $18,842,810 as of December 31, 2024, showing an increase of about 0.52%[146] Deposits and Funding - Total deposits increased to $18,932,925 thousand as of March 31, 2025, compared to $18,846,461 thousand at December 31, 2024, reflecting a growth of 0.5%[16] - The net increase in deposits for Q1 2025 was $66,911 thousand, compared to $41,501 thousand in Q1 2024[24] - Demand, non-interest bearing deposits decreased to $5.553 billion from $5.608 billion, a decline of 1.0%[104] - Time deposits greater than the FDIC limit of $250,000 totaled $764.4 million as of March 31, 2025, down from $803.1 million at the end of 2024, a decrease of 4.6%[104] Loans and Leases - Total loans and leases receivable increased to $13.6 billion as of March 31, 2025, compared to $13.1 billion at December 31, 2024, showing a growth of approximately 5%[58] - The total commercial loans and leases receivable reached $12.3 billion as of March 31, 2025, an increase from $11.9 billion at December 31, 2024[58] - Loans held for sale significantly decreased from $204.8 million at December 31, 2024, to $37.5 million at March 31, 2025, indicating a reduction of approximately 82%[54] - The total amount of accrued interest recorded for total loans was $86.2 million at March 31, 2025, down from $88.2 million at December 31, 2024[59] Derivatives and Fair Value - The fair value of derivatives as of March 31, 2025, is $14,146, which includes $99 classified as Level 3 inputs[146] - The company utilizes a fair value hierarchy with three levels, where Level 1 includes unadjusted quoted prices in active markets, Level 2 includes observable inputs, and Level 3 includes unobservable inputs[138] - Customers executed interest rate swaps and caps with an aggregate notional amount of $1.2 billion as of March 31, 2025, to facilitate customer risk management strategies[160] - The cumulative amount of fair value hedging adjustment for deposits was $1,815,082,000 as of March 31, 2025, compared to $1,794,923,000 at the end of 2024[159] Regulatory and Compliance - Customers will adopt ASU 2023-09 for the year ending December 31, 2025, requiring annual disclosures of specific reconciling items exceeding 5% of the effective tax rate[32] - ASU 2024-03, effective for fiscal years beginning after December 15, 2024, will require disclosure of specified costs and expenses in financial statements[32] - ASU 2025-01, effective for annual reporting periods beginning after December 15, 2026, will clarify the effective date for disaggregation disclosures[32]