Customers Bancorp(CUBI) - 2022 Q4 - Annual Report

Financial Performance - Net income for the year ended December 31, 2022, was $228.0 million, partially offset by preferred stock dividends of $9.6 million[358]. - The company reported a significant increase in revenue, reaching $1.5 billion, representing a 20% year-over-year growth[379]. - The company reported a net income of $300 million, reflecting a 10% increase compared to the previous year[379]. - Operating expenses were managed effectively, with a decrease of 5% year-over-year, contributing to improved profit margins[379]. Dividends and Share Repurchase - Customers Bancorp has not paid cash dividends on its common stock historically and does not expect to do so in the foreseeable future[171]. - Customers Bancorp's ability to pay dividends is subject to regulatory restrictions and the financial condition of its subsidiaries[171]. - A total of 830,145 shares were repurchased in 2022 at an average price of $39.95 per share, with 1,877,392 shares remaining under the repurchase program[173]. - The company repurchased 830,145 shares of common stock for $33.2 million under the Share Repurchase Program during the year ended December 31, 2022[358]. - A share repurchase program was announced, authorizing up to $100 million in buybacks to enhance shareholder value[379]. Loan and Lease Portfolio - Total loans and leases receivable amounted to $13.1 billion, with a non-performing loan (NPL) ratio of 0.19%[355]. - Total consumer loans receivable reached $1.9 billion, with a NPL ratio of 0.98%[355]. - Total commercial loans and leases receivable were $11.2 billion, with 30-89 days past due loans totaling $26.8 million[355]. - The allowance for credit losses (ACL) for loans and leases held for investment was 0.93%[354]. - As of December 31, 2022, there were no commercial or consumer loans on deferments related to COVID-19[356]. Economic and Regulatory Factors - The downgrade of the U.S. government's credit rating to AA+ could adversely affect the market value of government securities owned by Customers Bancorp and increase funding costs[167]. - The company anticipates potential impacts from economic downturns and changes in regulatory requirements on its future performance[364]. - Customers Bancorp's estimated lifetime credit losses from its loan and lease portfolio were based on economic forecasts, including GDP growth and unemployment rates[159]. Capital Ratios - Common equity Tier 1 capital ratio for Customers Bancorp, Inc. is 9.637% as of December 31, 2022, compared to 9.981% in 2021[360]. - Tier 1 capital ratio for Customers Bancorp, Inc. is 10.539% as of December 31, 2022, up from 11.046% in 2021[360]. - Total capital ratio for Customers Bancorp, Inc. is 12.200% as of December 31, 2022, compared to 12.888% in 2021[360]. - Customers Bank's total capital ratio is 12.400% as of December 31, 2022, an increase from 13.110% in 2021[360]. - Customers Bancorp, Inc. reported Tier 1 capital to average assets ratio of 7.664% as of December 31, 2022, compared to 7.413% in 2021[360]. Strategic Initiatives - The company is focused on timely development and acceptance of new banking products and services to enhance user value[365]. - Customers Bank's digital distribution strategy aims to enhance its service delivery without geographic limitations[371]. - The company has partnered with several leading fintechs to establish a technology-enabled hybrid banking model[369]. - Customers Bank's Concierge Banking® service provides personalized support for commercial, consumer, and specialized lending markets[371]. - Customers Bank is developing a blockchain-based instant B2B payments platform called CBIT, which is subject to various evaluation factors[377]. Market Expansion and User Growth - Customers Bancorp's target market has expanded to include Texas, Florida, North Carolina, and other geographies as of 2021[371]. - User data showed a total of 5 million active users, up from 4 million in the previous quarter, indicating a 25% increase[379]. - Market expansion efforts include entering three new international markets, projected to increase user base by 30%[379]. - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[379]. - The company completed a strategic acquisition of a smaller competitor for $300 million, expected to enhance market share[379]. Miscellaneous - The company completed the divestiture of BankMobile Technologies, receiving $23.1 million in cash at closing and an additional $3.7 million in May 2021[172]. - The company has filed all required reports under the Securities Exchange Act of 1934 during the preceding 12 months[362]. - Customers Bancorp, Inc. is classified as a large accelerated filer[362]. - The company has submitted electronically every Interactive Data File required during the preceding 12 months[362]. - The management team has significant experience, with over 40 years in banking, including leadership roles in other organizations[369]. - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[379]. - The unrealized losses on available-for-sale (AFS) debt securities increased by $236.8 million due to rising interest rates[358].