Customers Bancorp(CUBI) - 2025 Q3 - Quarterly Results

Financial Performance - Q3 2025 GAAP earnings were $73.7 million, or $2.20 per diluted share, with core earnings also at $73.5 million, or $2.20 per diluted share [4] - Net income available to common shareholders for Q3 2025 was $73,726,000, a significant increase from $55,846,000 in Q2 2025 [35] - Earnings per share (diluted) rose to $2.20 in Q3 2025, compared to $1.73 in Q2 2025 [35] - Net income for Q3 2025 reached $75,745 thousand, compared to $46,743 thousand in Q3 2024, reflecting a significant increase of 62% [38] - Basic earnings per common share for Q3 2025 were $2.28, up from $1.36 in Q3 2024, indicating a growth of 67.6% [38] - Core earnings for Q3 2025 were $73,473,000, compared to $58,147,000 in Q2 2025 [35] - GAAP net income for Q3 2025 was $73,726,000, translating to $2.20 per share, compared to $55,846,000 or $1.73 per share in Q2 2025 [55] - Core earnings for Q3 2025 reached $73,473,000, or $2.20 per share, up from $58,147,000 or $1.80 per share in Q2 2025 [55] Asset and Deposit Growth - Total assets increased to $24,260,163,000 in Q3 2025, up from $22,550,800,000 in Q2 2025 [35] - Total deposits rose by $1.4 billion to $20.4 billion, with a year-over-year increase of $2.3 billion, or 13% [11] - Total deposits reached $20,405,023,000 as of September 30, 2025, compared to $18,069,389,000 in the prior year, marking an increase of 12.9% [47] - Cash and cash equivalents increased to $4,185,639 thousand, compared to $3,503,511 thousand in the previous quarter, marking a growth of 19.5% [39] - Non-interest bearing demand deposits grew to $6,380,879,000 in Q3 2025, up from $5,481,065,000 in Q2 2025 [35] - Total non-interest-bearing deposits increased to $6,380,879,000 as of September 30, 2025, compared to $4,670,809,000 in the prior year, reflecting a growth of 36.5% [47] Loan and Lease Performance - Loans and leases held for investment increased to $16.3 billion, up $893 million, or 5.8%, from the previous quarter [7] - Total loans and leases reached $16,303,147,000 in Q3 2025, compared to $15,412,400,000 in Q2 2025 [35] - Total loans and leases held for investment increased to $16,272,250,000 as of September 30, 2025, up from $15,060,439,000 a year earlier, representing a growth of 8.1% [46] - Specialized lending loans and leases increased to $7,083,620,000 as of September 30, 2025, from $5,468,507,000 a year earlier, showing a significant rise of 29.5% [46] - The total commercial loans and leases portfolio reached $14,837,784,000 as of September 30, 2025, up from $12,522,328,000 a year earlier, representing a growth of 18.5% [46] Income and Expense Analysis - Non-interest income totaled $30.2 million, an increase of $21.6 million compared to Q3 2024, primarily due to higher loan fees [21] - Total interest income for Q3 2025 was $361,479 thousand, an increase from $332,113 thousand in Q3 2024, representing a year-over-year growth of approximately 8.8% [38] - Total interest expense decreased to $159,567 thousand in Q3 2025 from $173,568 thousand in Q3 2024, a reduction of approximately 8% [38] - GAAP net interest income for Q3 2025 was $201,912,000, an increase from $176,703,000 in Q2 2025, representing a growth of 14.0% [60] - GAAP non-interest expense for Q3 2025 was $105,217,000, a decrease from $106,626,000 in Q2 2025, reflecting a reduction of 1.3% [60] Credit Quality and Losses - Non-performing loans decreased to 0.17% of total loans and leases, down from 0.18% in the previous quarter [16] - The provision for credit losses in Q3 2025 was $27 million, compared to $21 million in Q2 2025 [15] - The total non-performing loans (NPLs) to total loans ratio was 0.17% as of September 30, 2025, indicating a significant decrease in asset quality concerns [49] - Net charge-offs for Q3 2025 amounted to $15,371, compared to $13,115 in Q2 2025 and $17,144 in Q1 2025 [50] - The allowance for credit losses on loans and leases was $151,809 thousand, slightly up from $147,418 thousand in the previous quarter [39] Capital and Efficiency Ratios - Common equity increased by $263 million to $2.0 billion, primarily from earnings and a successful equity raise [14] - The efficiency ratio improved to 45.39% in Q3 2025, down from 51.23% in Q2 2025 [35] - Common equity Tier 1 capital ratio improved to 13.0% in Q3 2025 from 12.46% in Q3 2024, showing a strengthening of capital position [36] - Tangible common equity increased to $2,040,229,000 in Q3 2025 from $1,777,728,000 in Q2 2025, marking a growth of 14.8% [61] - The tangible common equity to tangible assets ratio improved to 8.4% in Q3 2025 from 7.9% in Q2 2025, indicating stronger capital efficiency [61]