Customers Bancorp(CUBI) - 2025 Q3 - Quarterly Report

Financial Performance - Net income for the three months ended September 30, 2025, was $75,745 thousand, up from $46,743 thousand in the same period of 2024, indicating a growth of 62.0%[16] - Net income for the nine months ended September 30, 2025, totaled $149,596,000, a decrease of 3.1% from $154,554,000 in the same period of 2024[17] - Comprehensive income for the three months ended September 30, 2025, was $95,981,000, up from $72,019,000 in 2024, reflecting a 33.5% increase[17] - Basic earnings per common share for the three months ended September 30, 2025, was $2.28, compared to $1.36 for the same period in 2024, representing a growth of 67.6%[16] - Net income available to common shareholders for Q3 2025 was $73,726,000, compared to $42,937,000 in Q3 2024, representing a year-over-year increase of 71.5%[34] Asset and Deposit Growth - Total assets increased to $24,260,163 thousand as of September 30, 2025, up from $22,308,241 thousand at December 31, 2024, representing an increase of 8.75%[15] - Total deposits rose to $20,405,023 thousand as of September 30, 2025, compared to $18,846,461 thousand at December 31, 2024, an increase of 8.2%[15] - The net increase in deposits for the nine months ended September 30, 2025, was $1,530,025,000, compared to $128,395,000 in 2024[24] - Cash and cash equivalents at the end of September 2025 were $4,185,639,000, up from $3,088,022,000 at the end of September 2024[25] Income and Expense Analysis - Net interest income for the three months ended September 30, 2025, was $201,912 thousand, compared to $158,545 thousand for the same period in 2024, reflecting a year-over-year increase of 27.3%[16] - Non-interest income for the three months ended September 30, 2025, was $30,191 thousand, significantly up from $8,557 thousand in the same period of 2024, reflecting an increase of 252.5%[16] - The company reported a total non-interest expense of $105,217 thousand for the three months ended September 30, 2025, slightly up from $104,018 thousand in the same period of 2024, indicating a marginal increase of 1.2%[16] Credit Losses and Allowances - Provision for credit losses increased to $26,543 thousand for the three months ended September 30, 2025, compared to $17,066 thousand for the same period in 2024, marking a rise of 55.6%[16] - The allowance for credit losses on loans and leases was $151,809 thousand as of September 30, 2025, compared to $136,775 thousand at December 31, 2024, an increase of 11.0%[15] - The allowance for credit losses (ACL) was $6.9 million as of September 30, 2025, reflecting a benefit of $0.8 million for the three months ended[134] Shareholder Actions - Customers Bancorp authorized a share repurchase program in 2024, reflecting the company's commitment to returning value to shareholders[12] - Customers Bancorp repurchased 104,206 shares of its common stock for $5.6 million under the 2024 Share Repurchase Program during the nine months ended September 30, 2025[123] - The company issued 2,518,248 shares of common stock during the three months ended September 30, 2025, raising $163,475,000 after offering costs[18] Capital and Regulatory Compliance - Customers Bancorp satisfied all capital requirements as of September 30, 2025, under regulatory guidelines[137] - Customers Bancorp, Inc. reported a Common Equity Tier 1 capital of $2,089,260, representing a ratio of 12.999% against a minimum requirement of 4.500%[139] - The Tier 1 capital ratio for Customers Bancorp, Inc. was 13.510% as of September 30, 2025, surpassing the minimum requirement of 6.000%[139] Loan and Lease Performance - The total loans and leases receivable increased to $14.7 billion as of September 30, 2025, up from $13.1 billion at December 31, 2024, representing a growth of approximately 11.5%[65] - Commercial loans and leases receivable reached $13.4 billion, a significant increase from $11.9 billion in the previous year, driven by specialized lending and commercial real estate[65] - The total amount of accrued interest recorded for total loans was $88.9 million as of September 30, 2025, slightly up from $88.2 million at the end of 2024[66] Derivative and Fair Value Measurements - The fair value of derivative assets was reported at $12,613,000 and derivative liabilities at $17,300,000 as of September 30, 2025[173] - Total assets measured at fair value on a recurring basis reached $3,593,546 thousand as of September 30, 2025, with significant contributions from Level 2 inputs totaling $3,199,813 thousand[158] - The fair value of available-for-sale debt securities was $1,979,832 thousand as of September 30, 2025, with $1,697,993 thousand classified under Level 2 inputs[157] Legal and Compliance Matters - The company intends to defend itself against a federal securities class action complaint filed against it, which could have potential implications for its financial position[182] - A Special Litigation Committee was formed to investigate allegations raised in a demand letter regarding deficiencies in disclosures concerning anti-money laundering compliance[183]